Here are the two cash flow forecasts for two mutually exclusive projects. Find out each project’s discounted payback, NPV, IRR, and MIRR at a cost of capital of 8.25%. What is the project’s crossover rate? Graph the NPV profiles for the projects. At what interest rates will you prefer project B to A? Show all work.
Time Project A Project B
0 (8500) (9500)
1 3600 3900
2 2400 2900
3 2850 2900
4 5200 5550