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

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Question 1-- NPV Profiles: Graph the NPVprofiles for both projects on a common chart., making sure youidentify 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, thirdcolumn is Project B.

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

Question 2--  IRR Applicability:Forwhat range of possible interest rates would you want to use IRR tochoose between the those to projects? For what range would you NOTwant to use IRR?

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Question 1-- NPV Profiles: Graph the NPVprofiles for both projects on a common chart., making sure youidentify the "crucial" points.Time Project A Cash flow Project B Cash flow0 -$725 -$8501 100 2002 250 2003 250 2004 200 2005 100 2006 100 2007 100 200Note: First column is time, second column is Project A, thirdcolumn is Project B.This is a two-part question. Answer for first ? is needed tosolve ? 2.Question 2--  IRR Applicability:Forwhat range of possible interest rates would you want to use IRR tochoose between the those to projects? For what range would you NOTwant to use IRR?

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