Reference no: EM132608093

Contact Manufacturing Inc. is considering two alternative investment proposals. The first proposal calls for a major renovation of the company's manufacturing facility. The second involves replacing just a few obsolete pieces of equipment in the facility. The company will choose one project or the other this year, but it will not do both. The cash flows associated with each project appear below and the firm discounts project cash flow at 15%

Year                      Renovate                  Replace

0                          -9,000,000        -2,400,000

1                             3,000,000       2,000,000

2                              3,000,000      800,000

3                                 3,000,000  200,000

4                                3,000,000     200,000

5                                  3,000,000          200,000

Question 1: Make a Chart the NPV profiles of these projects. Label the intersection points on the x- and y- axis and the cross over point