Consider the following two mutually exclusive projects.
Year Cash Flow (X) Cash Flow (Y)
0 -$15,000 -$15,000
1 8,150 7,700
2 5,050 5,150
3 6,800 7,250
Sketch the NVP profiles for X and Y over a range of discount rates from zero to 2 percent.
What is the crossover rate for these two projects?