10-13 Cummings products is considering two mutually exclusive investments is expected net cash flows are as follows:,Year,Project A, ,Project B,0,(300), ,(405),1,(387), ,134,2,(193), ,134,3,(100), ,134,4,600, ,134,5,600, ,134,6,850, ,134,7,(180), ,0, ,a. Construct NPV profiles for Project A and Project B,b. What are the two projects’ IRR?,c. If you were told that each project’s cost capital was 10%, which project, if either, should be selected? If the cost of capital were 17%, what would be proper choice?,d. What is the crossover rate, and what is its significance?, ,
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