Question: Consider the following net present value profile. Net Present Value 400 300 Project L's Net Present Value Profile 200 Crossover Rate -7.2% 100 Project S's

 Consider the following net present value profile. Net Present Value 400
300 Project L's Net Present Value Profile 200 Crossover Rate -7.2% 100

Consider the following net present value profile. Net Present Value 400 300 Project L's Net Present Value Profile 200 Crossover Rate -7.2% 100 Project S's Net Present Value Profile IRR = 14.5% 5 7.2 10 r (%) 15 IRR - = 11.8% -100 Suppose both projects have same r which is 10%. Project S's NPV is 80 and Project L's NPV is 50. These (Project S & L) are independent projects. Which of the following decision is right? Suppose both projects have same r which is 10%. Project S's NPV is 80 and Project L's NPV is 50. These (Project S&L) are independent projects. Which of the following decision is right? Accept Projects, but reject Project L. Accept both projects. Accept Project L, but reject Project S. Reject both projects

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