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Refer to the graph of mutually exclusive projects shown above Kindly explain with reasoning the...

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Finance

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Refer to the graph of mutually exclusive projects shown above Kindly explain with reasoning the below

a. At an 8% cost of capital, which project has a higher NPV?

b. Where on the graph would there be a conflict between the NPV and IRR methods? In other words, under what conditions would the NPV method tell you that project B is better and the IRR method tell you that project A is better?

c. What does the slope of these NPV profile curves tell us ?

.

+ Project A + Project B NPV $5,000.00 $4,000.00 $3,000.00 $2,000.00 $1,000.00 $0.00 ($1.000.000% ($2,000.00) ($3,000.00) ($4,000.00) 10% 20% 30% 40% Discount rate

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