Question: Cooper Electronics uses NPV profiles to visually evaluate competing projects. Key data for the two projects under consideration are given in the following table: LOADING...
Cooper Electronics uses NPV profiles to visually evaluate competing
projects.
Key data for the two projects under consideration are given in the following table:
LOADING...
.
Using these data, graph, on the same set of axes, the NPV profiles for each project using discount rates of 0%,8%, and the IRR.
| Terra | Firma | |
| Initial investment | $22,000 | $28,000 |
| Year | Operating cash inflows | |
| 1 | $6,000 | $8,000 |
| 2 | $9,000 | $11,000 |
| 3 | $7,000 | $7,000 |
| 4 | $8,000 | $11,000 |
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