Sketch net present value profile for each of these projects

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Consider the following projects, X and Y where the firm can only choose one. Projects X costs $600 and has cash flows of $400 in each of the next 2 years. Project Y also costs $600, and generates cash flows of $500 and $275 for the next 2 years, respectively. Sketch a net present value profile for each of these projects. Include crossover point.

Reference no: EM131050458

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