Question: You are considering two mutually exclusive projects with the following cash flows:: What is the net present value of Project A using 15% discount rate?

You are considering two mutually exclusive projects with the following cash flows:: What is the net present value of Project A using 15% discount rate? $930 $1, 070 $1, 740 $3, 500 $16, 070 Compute the IRR of Project B. 14.3% 15.4% 16.7% 24.9% 83% Compute the crossover rate between the two projects. -5.2% 0% 8.2% 16.7% 24.1% Which project should you take? A always because its IRR is greater than B's A if the discount rate is less than the crossover rate, otherwise B A if the discount rate is between the crossover rate and A's IRR. B if the discount rate is less than the crossover rate A if the discount rate is greater than the crossover rate, otherwise B A if the discount rate is less than crossover rate, B if the discount rate is between the crossover rate and B's IRR
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