a) You are a financial analyst for Damon Electronics Company. The director of capital budgeting has asked you to analyze two proposed capital investments, Projects X & Y. Each project has a cost of $10,000, and the cost of capital for each project is 12 percent. The projects’ expected net cash flow are as follows:

EXPECTED NET CASH FLOWS

Year	Project X	Project Y
0	($10,000)	($10,000)
1	6,500	3,500
2	3,000	3,500
3	3,000	3,500
4	1,000	3,500

Calculate each project’s modified rate of return (MIRR). [3+3=6]

b) Using the table above, calculate is the crossover rate [4]

 Define NPV Profile