You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value.

Year	Project(A)	Project (B)
0	-$30,000	-$30,000
1	13,000	5,000
2	11,000	5,000
3	9,000	5,000
4	7,000	5,000
5	0	5,000
6 7 8 9 10	0 0 0 0 0	5,000 5,000 5,000 5,000 5,000

The required rate of return is 10%

Q1:(4 points) Define and find the crossover rate.

Q2:Sketch the NPV profile. Plot all the relevant coordinates (i.e., the points on the x and y axis; and the cross-over rate) on the graph.