Question: Consider the following two mutually exclusive projects: Year Cash Flow (x) Cash Flow (Y) 0 -24000 -24000 1 10620 12100 2 10900 9360 3 10500

Consider the following two mutually exclusive projects:

Year Cash Flow (x) Cash Flow (Y)
0 -24000 -24000
1 10620 12100
2 10900 9360
3 10500 10400

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?

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