Question: Your firm is considering two mutually exclusive projects with cash flows as indicated in the Excel file. A) What is the NPV and IRR for

Your firm is considering two mutually exclusive projects with cash flows as indicated in the Excel file.

A) What is the NPV and IRR for the two projects, respectively?

B) Calculate the crossover rate.

Section A
Discount rate 12%
Year Project A Project B
0 -500 -500
1 180 200
2 175 250
3 160 170
4 100 25
5 100 30
A)
NPV $30.72 -$37.16
IRR 15.09% 15.45%
B)
Section B
Year Project A Project B Differential cash flow
0 175 250
1 160 170
2 100 25
3 100 30
4 0 0
5 0 0
Crossover rate:

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