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: B.


Cooper Electronics uses NPV profiles to visually evaluate competing projects. Key data for the two projects under consideration are given in the following table: B. 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. The IRR of project Terra is % (Round to two decimal places.) Data Table The IRR of project Firma is %. (Round to two decimal places.) If the discount rate is 0%, the NPV of project Terra is S. (Round to the nearest cent.) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) If the discount rate is 0%, the NPV of project Firma is SL. (Round to the nearest cent.) 2 if the discount rate is 8%, the NPV of project Terra is (Round to the nearest cent.) Initial investment Year 1 Terra Firma $24,000 $23,000 Operating cash inflows $9,000 57.000 $12,000 59,000 $6,000 $11,000 $8,000 S7.000 if the discount rate is 8%, the NPV of project Firma is $. (Round to the nearest cent.) if the discount rate is the project's IRR, the NPV of project Terra is $. (Round to the nearest cent.) If the discount rate is the project's IRR, the NPV of project Firma is $. (Round to the nearest cent.) Which of the following graphs correctly shows the NPV profiles of the two projects? (Select the best answer below.) 2 3 4 Print Done OA a 14000 14000 12000 - Project Terra Project Firma - Project Terra - Project Firma Q 12000- Q 100004 10000 8CCHI SIDO 6000 6000 an Click to select your answer(s). ? O A. B. 14000- 14000 12000- Project Terra Project Firma 12000- Project Terra Project Firma 10000- 10000 LY 8000- 8000- 6000- 6000- NPV ($) NPV ($) 4000- 4000- 2000- 2000- 0+ - 01 10 15 20 25 5 10 15 20 -2000- -2000- -4000- -4000 Discount Rate (%) Discount Rate (%) O c. 14000- 14000 12000- Project Terra Project Firma 12000- Project Terra Project Firma 10000- 10000 LY 8000- 8000- 6000- 6000- NPV ($) NPV ($) 4000- 4000- 2000- 20004 Click to select your answeris)
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