Question: Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 -$24,000 -$24,000 1 $10,620 $12,100 2 $10,900 $9,360 3 $10,500

  1. Consider the following two mutually exclusive projects:

Year Cash Flow (X) Cash Flow (Y)

0 -$24,000 -$24,000

1 $10,620 $12,100

2 $10,900 $9,360

3 $10,500 $10,400

Sketch the NPV profiles for X and Y over a range of discount rates from zero to 25 percent. What is the crossover rate for these two projects?

Answer not an excel screenshot please

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