10.

You are analyzing the following two mutually exclusive projects and have developed the following information. Discount Rate is11%. What is the crossover rate (A.-E.)?NPV of Each.IRR of Each? Which Project do you like the best?A or B?

year Cash flow A cash flow b

0 -75,000 -75,000

1 26300 24000

2 29500 26900

3 45300 51300

A.

13.17 percent

B.

13.33 percent

C.

14.32 percent

D.

14.60 percent

E.

15.20 percent

NPV:$_______$_______

IRR:____%____%

Project you like best:_________________________