400 300 Project L's Net Present Value Profile 200 100 Crossover Rate - 7.2% Project...

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400 300 Project L's Net Present Value Profile 200 100 Crossover Rate - 7.2% Project S's Net Present Value Profile IRR, = 14.5% 0 5 7.2 10 r(%) 15 IRR = 11.8% -100 Suppose both projects have same r which is 10%. Project S's NPV is 80 and Project L's NPV is 50. These (Project S & L) are independent projects. Which of the following decision is right? Accept Project S, but reject Project L. Accept both projects. Reject both projects. Accept Project L, but reject Project S

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