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

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% 0 5 7.2 10 r (%) 15 IRA, = 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? O Accept Project L, but reject Project S. O Reject both projects. O Accept both projects. O Accept Project S, but reject Project L

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