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Question 1-- NPV Profiles: Graph the NPV profiles for both projects on a common chart., making...

Question 1-- NPV Profiles: Graph the NPV profiles for both projects on a common chart., making sure you identify the "crucial" points.

Time Project A Cash flow Project B Cash flow

0 -$725 -$850

1 100 200

2 250 200

3 250 200

4 200 200

5 100 200

6 100 200

7 100 200

Note: First column is time, second column is Project A, third column is Project B.

This is a two-part question. Answer for first ? is needed to solve ? 2.

Question 2--  IRR Applicability:For what range of possible interest rates would you want to use IRR to choose between the those to projects? For what range would you NOT want to use IRR?

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jeff jeffy answered 1 year ago
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