Question: please answer 6. Suppose you are evaluating two mutually exclusive projects, Thing 1 and Thing 2, with the following cash flows: (a) If the cost

please answer
please answer 6. Suppose you are evaluating two mutually exclusive projects, Thing
1 and Thing 2, with the following cash flows: (a) If the

6. Suppose you are evaluating two mutually exclusive projects, Thing 1 and Thing 2, with the following cash flows: (a) If the cost of capital on both projects is 5%, which project, if any, would you choose? Why? (b) If the cost of capital on both projects is 8%, which project, if any, would you choose? Why? (c) If the cost of capital on both projects is 11%, which project, if any, would you choose? Why? (d) If the cost of capital on both projects is 14%, which project, if any, would you choose? Why? (e) At what discount rate would you be indifferent between choosing Thing 1 and Thing 2 ? (f) On the same graph, draw the investment profiles of Thing 1 and Thing 2. Indicate the following items: - cross-over discount rate - NPV of Thing 1 if the cost of capital is 5% - NPV of Thing 2 if cost of capital is 5% - IRR of Thing 1 - IRR of Thing 2

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