Question: Assume that the riskiness of the projects is identical. Make an NPV profile & estimate the cross over rate. What does this tell us about the features of the two projects?
|
Project
|
Cost ($)
|
Cash Flow 1 ($)
|
Cash Flow 2 ($)
|
Cash Flow 3 ($)
|
|
|
|
|
|
|
|
Alpha
|
$10,000
|
$2,000
|
$5,000
|
$7,000
|
|
Gamma
|
$10,000
|
$6,000
|
$7,000
|
$3,000
|