Question: 7. A corporation has the following two mutually exclusive projects available: Year Project X Project Y 0 1 2 3 4 $205,000 110,000 60,000 80,000

7. A corporation has the following two mutually exclusive projects available: Year Project X Project Y 0 1 2 3 4 $205,000 110,000 60,000 80,000 60,000 $325,000 85,000 115,000 130,000 120,000 What is the crossover rate for these two projects? What is the NPV of each project at the crossover rate? When would you choose Project X? Project Y? Reject both?

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