Question: pleasse solve all, please type the answer dont wirte on paper 6. Suppose you are evaluating two mutually exclusive projects, Thing 1 and Thing 2

pleasse solve all, please type the answer dont wirte on paper
pleasse solve all, please type the answer dont wirte on paper 6.
Suppose you are evaluating two mutually exclusive projects, Thing 1 and Thing

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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