Question: You are considering an investment in two projects, A and B. Both projects will cost $100,000, and the projected cash flows are as follows: a.

You are considering an investment in two projects, A and B. Both projects will cost $100,000, and the projected cash flows are as follows:

a. Assuming that the WACC is 8%, calculate the payback period, discounted payback period, NPV, PI, IRR, and MIRR. If the projects are mutually exclusive, which project should be selected?
b. Create an NPV profile chart for projects A and B. What is the exact crossover rate for these two projects?

Year Project A Project B 45,000 18,750 33,750 25,000 1 $6,250 35,000 4 43,750 18, 50,000 12,500

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