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Following questions has 3 parts. You've estimated the following cash flows (in $ million) for...

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Finance

Following questions has 3 parts.

You've estimated the following cash flows (in $ million) for two mutually exclusive projects:

Year Project A Project B
0 -27 -41
1 30 45
2 40 50

A) What is the crossover rate, i.e., the discount rate at which both projects have the same NPV?

B) What is project A's NPV at the crossover rate?

C) What is project B's NPV at the crossover rate?

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