Problem:
You have two projects. You must calculate the NPV, IRR, and payback for both. These projects may be made up and very simplified but must show numerical examples. Explain the value of NPR, IRR and payback. Of the two projects you've created, which project would you invest in if the projects were mutually exclusive versus independent for each of the methods. Draw the NPV profiles of the two projects. Once this is done, if there is any, calculate the cross over. What would your decision be at a WACC higher and lower than the cross over?