Your firm is considering two projects that are mutually exclusive. The forecast yearly cash flows are shown below.

Time Project A Project B 0 -200,000 -200,000 1 -40,000 100,000 2 80,000 75,000 3 100,000 40,000 4 120,000 20,000

A) Calculate the incremental IRR (i.e., the cross-over rate) and construct an NPV profile graph to illustrate how the choice between the projects depends on the discount rate. Indicate when you should accept each project, making sure that you are explicit about the conclusions to be drawn from the NPV profile and provide specific numbers. (Do X if ; do Y if ; do Z if)