A project's NDV profie graph intersects the Y-axis at 0% cost of capital and intersects the X-axis at the project's (where NPV = 0), The Y awis intersection point represents the project's undiscounted NDV. The point at which 2 projects' profies cross one another is the crossover rate. The crossover rate can be found by calculating the of the differences in the grojects' cash flows (Project Delta). A project has most of its cash flows coming in later years, its NPV will NPV profle indicates that increases in the cost of capital lead to large declines in NPV. If a severely penalized by high capital costs. The significance of the crossover rate is that at any cost of capitai provide the same conclusion for evaluating mutually exclusive projects. However, at any cost of capital will conflict. In that szuation, the mothod wal always provide the correct project acceptance result. Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analyss, Both projects' after-tax cash fiows are shewn on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects hove 4-year Wves, and they have isk characteristics smilar to the firm's average project. Bellinger's wACC is 9%. What is Project Delte's tRR? Do not round intermediste calculations. Round your answer to two decimal places. What is the signincance of this IRa? It is the , after this point when mutually exclusive projects are cansidered there is no conflict in project acceptence between the NRV and IAR apgrosches. NPV Profiles A NDV Drafiles C NDV Profiles n