Find the cross over rate

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Reference no: EM131569300

Consider the following mutually exclusive investments  

T=0 1 2

Investment A:

-200 40 210

Investment B:

-200 170 70

a. Find IRRs for both projects

b. "Draw" a graph, using Excel, in which you will show the NPV of each project as a function of its discount rate (i.e NPV on the vertical axis and r on the horizontal axis). Both NPVs should be on the same graph.

c. Find the cross over rate

d. Please describe as fully as possible which project is the best and under which circumstances.

Reference no: EM131569300

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