Question: please walk me through the solution Consider the following mutually exclusive investments T=0 1 2 3 Project X: -150 30 60 120 Project Y: -150

please walk me through the solution Consider the following mutually exclusive investments

T=0

1

2

3

Project X:

-150

30

60

120

Project Y:

-150

110

30

60

a. Find IRRs for both projects.
b. Find the cross over rate. Show the formula you need to use (in symbols) and with numbers plugged in.
c. Draw a graph (NPV schedule), where you will show the NPV of each project as a function of its discount rate (i.e., NPV on the vertical axis and r on the horizontal axis). Both
NPVs should be on the same graph.
d. Please describe as fully as possible which project is the best and under which circumstances.

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