Question: Cooper Electronics uses NPV profiles to visually evaluate competing projects. Key data for the two projects under consideration is given in the following table. Using

Cooper Electronics uses NPV profiles to visually evaluate competing projects. Key data for the two projects under consideration is given in the following table. 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.

Initial investment (CF0) Terra Firma

$30 000 $25 000

Year (t) Operating cash inflows

1 $7 000 $6 000

2 10 000 9 000

3 12 000 9 000

4 10 000 8 000

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