Canfly Airlines is considering two mutually exclusive projects, Project A and Project B.

The projects have the following cash flows (in millions of dollars):

Year Project A Cash Flow

O

-$4.0

Project B Cash Flow

1

?

2.0

2

3.0

1.7

3

5.0

3.2

5.8

The crossover rate of the two projects' NPV profiles is 9 percent. What is the cash

flow for Project B att=0?

Marks

e

O a.

-$4.51 million

Ob.

-$4.22 million

Oc.

-$4.0 million

O d.

-$8.73 million

O e.

-$7.53 million

Canfly Airlines is considering two mutually exclusive projects, Project A and Project B. The projects have the following cash flows (in millions of dollars): Yoar Project A Cash Flow Project B Cash Flow 0 -$4.0 ? 2.0 1.7 3.2 3 5.0 5.8 The crossover rate of the two projects' NPV profiles is 9 percent. What is the cash flow for Project B at t = 07 a. -$4.51 million b. -$4.22 million O c. -$4.0 million O d. -$8.73 million O e. -$7.53 million 1 2 3.0