1) Your company is considering two mutually exclusive projects whose costs and net cash flows are shown below. The projects are equally risky, their cost of capital is 12% and interim cash flow can be invested at 3%.

Year	X	Y
0	-1000	-1000
1	100	1000
2	300	100
3	400	50
4	700	50

Calculate the NPV, IRR, Terminal Value and MIRR for each project and indicate which (if either) you'd recommend and why.

		X	Y
NPV		?	?
IRR		?	?
Terminal Value		?	?
MIRR		?	?

2) New division is considering two investment projects, each of which requires an up-front expenditure of $25 million. You estimate the cost of capital is 10% that the investments will produce following after-tax cash flows(in millions of dollars):

Year	Project A	Project B
0	-25	-25
1	5	20
2	10	10
3	15	8
4	20	6

What is crossover rate?