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Heller Airlines is considering two mutually exclusive projects,A and B. The projects have the same risk. Below are the cash flowsfrom each project: Project A Project B Year Cash Flow Cash Flow 0-$2,000 -$10,000 1 6,000 15,000 a. Graph the NPV profile of eachinvestment. b. Indicate the crossover point and calculate thecrossover rate. c. If the cost of capital is 8%, which projectshould be chosen and why?
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