1. Consider the following mutually exclusive projects:

   	T=0	1	2	3
   Project X:	-100	20	30	90
   Project Y:	-100	80	30	20

2. Find IRRs for both projects.
3. Find the cross-over rate.
4. Construct a graph, where you will show the NPV of each project as a function of its discount rate (i.e NPV on the vertical axis and r on the horizontal axis). Both NPVs should be on the same graph. This graph is the NPV schedule.
5. Please describe as fully as possible which project is the best and under which circumstances.

1. Please type all your solutions into this file. The detailed solution to each question should follow the question itself.
2. This is NOT a multiple-choice exam. To receive a good grade, you must show your work and write solutions in detail, including:
   • a. Providing formulas in symbols. Formulas are those used in the lecture notes and the textbook. Excel or Financial Calculator formulas are NOT appropriate substitutes.
   • b. Illustrating how you plug numbers, given in each question, into these formulas.
   • c. Writing a short verbal summary at the end of each problem

Draw timelines and graphs to illustrate your answers.

You can use Excel for calculations. (BUT IT MUST BE DONE IN WORD)

Question 1 Consider the following mutually exclusive projects: T=0 1 Project X: -100 20 Project Y: -100 80 Jalol 2 30 30 3 90 20 a. Find IRRs for both projects. b. Find the cross-over rate. c. Construct a graph, where you will show the NPV of each project as a function of its discount rate (ie NPV on the vertical axis and r on the horizontal axis). Both NPVs should be on the same graph. This graph is the NPV schedule. d. Please describe as fully as possible which project is the best and under which circumstances