Question: A company is evaluating two mutually exclusive projects with the following expected cash flows: Year 0 Project B ($650) 210 1 2 210 Net Cash

A company is evaluating two mutually exclusive projects with the following

A company is evaluating two mutually exclusive projects with the following expected cash flows: Year 0 Project B ($650) 210 1 2 210 Net Cash Flows Project A ($400) -528 -219 150 1100 820 990 ($325) 3 4 210 210 210 5 6 210 7 210 Your group requirements are: 1. Determine NPV of both projects if cost of capital is 10% 2. What is each projects IRR? 3. Choose the rankings according to NPV, Profitability Index, and IRR 4. Is there a cross-over rate, what is it

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