For what range of possible interest rates would you want


Problem: Finance NPV Graph

Use the project cash flows for the two mutually exclusive projects shown below to answer the following two questions.

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

1) NPV Profiles Graph the NPV profiles for both projects on a common chart, making sure that you identify all of the "crucial" points.

2) IRR Applicability For what range of possible interest rates would you want to use IRR to choose between these two projects? For what range of rates would you NOT want to use IRR?

The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.

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Financial Management: For what range of possible interest rates would you want
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