Draw out and identify the five points in the npv

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Reference no: EM132180159

Question - Consider the two mutually exclusive projects:

 

t = 0

t = 1

t = 2

t = 3

A

($4500)

$2590

$2010

$1465

B

($4600)

$2630

$2025

$1600

Draw out (or graph in excel) and identify the five points in the NPV profiles of the two projects.

Which project will you accept at the crossover rate and why?

Which project will you accept at a discount rate of 6% and why?

Reference no: EM132180159

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