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If a firm's cost of capital is 20%, which project should we pick? FIGURE 10.4...

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If a firm's cost of capital is 20%, which project should we pick? FIGURE 10.4 NPV Profiles Net present value profiles for Bennett Company's projects A and B NPV ($000) 40 30 Project A 20 10 Project B 0 IRRO = 21.7% B A 10.7% IRRA = 19.9% -20 How to estimate? 0 5 10 30 15 20 25 Discount Rate (%)

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