Label points on npv profile of two projects

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Consider the two mutually exclusive projects:

Time A B

0 (4500) (4600)

1 2590 2630

2 2010 2025

3 1465 1600

Calculate and draw out and label the 5 points on the NPV profile 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: EM132648655

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