Question: Consider the two Projects A and B with the below Cash flows in $ :: year CF for project A CF for project B 0

Consider the two Projects A and B with the below Cash flows in $ ::

year CF for project A CF for project B
0 -800 -1000
1 200 300
2 300 300
3 300 350
4 300 400
5 350 400
6 350 400

A) Draw the NPV profiles for the two Projects;

B) Find the crossover rate.

C) If they are mutually exclusive projects, which project would you accept, Project A or B?

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