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6.8 You have two projects with the following cash flows: Year 0 Year 1 $...

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6.8 You have two projects with the following cash flows: Year 0 Year 1 $ 150 Project A Project B -$ 100 -$1.000 $1,500 a. Draw the NPV curves of these two projects for the following five discount rates: 0%, 5%, 10%, 20%, and 50%. b. The discount rate is 20%. Calculate the two projects' Novs. Which would you prefer by the NPV rule? Which would you prefer by the IRR rule? c. Which rule would you prefer if the projects were mutually exclusive? Why

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