Question: there are 2 questions i only need the answer to the top question but you need information from the bottom question Braeden is evaluating two

Braeden is evaluating two mutually exclusive projects (expected cash flows shown below). The firm's cost of capital is 9 percent. Year Project A Project B 0 (900) (900) 100 500 2 270 400 3 450 300 4 540 130 Draw the NPV profiles for the mutually exclusive projects A and B. Which of the following statements is most FALSE? The NPV profiles for Projects A and B cross at 2.24 percent. Project A's NPV profile intercepts the vertical axis at $460. Project B's NPV profile intercepts the horizontal axis at 22.18%. The crossover must be caused by the difference in reinvestment rates used by NPV and IRR. The crossover must be between 9% and the IRR for Project A. Use the following data to answer the next 2 questions: Braeden is evaluating two mutually exclusive projects (expected cash flows shown below). The fins cost of capital is 9 percent. Year Project A Project B (900) 0 (900) 1 100 500 2 270 400 3 450 300 540 130 The NPV for A is $149.03 and the IRR for Ais 14.81%. The NPV for A is $219.14 and the IRR for B is 22.18%. The NPV for B is $219.14 and the IRR for B is 14.81%. The NPV for B is $430 and the IRR for B is 9%. Two correct answers exist
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