In: Finance
Cooper Electronics uses NPV profiles to visually evaluate competing projects. Key data for the two projects under consideration are given in the following table: Using these data, graph, on the same set of axes, the NPV profiles for each project using discount rates of 0%, 8%, and the IRR.
Initial investment   $30,000   $25,000
Year   Operating cash inflows  
1   $7,000   $6,000
2   $10,000   $9,000
3   $12,000   $9,000
4   $10,000   $8,000