Question: You are considering Projects M and N, whose cash flows are shown below. These projects are mutually exclusive. Year: Project M: Project N: 0 -

You are considering Projects M and N, whose cash flows are

You are considering Projects M and N, whose cash flows are shown below. These projects are mutually exclusive. Year: Project M: Project N: 0 - $1,025 $1,025 1 $650 $100 2 $450 $300 3 $250 $500 4 $50 $700 At what discount rate are you indifferent between choosing project M or N? (That is, what is the crossover rate or the discount rate makes the NPVM = NPVN?) a. 18.95% -15.51% OC 30.93% O d. 10.54% Cannot be calculated as all cash flows are positive

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