Finance NPV Graph Problem

solve the two math problems attached 

13-29  

ADVANCED PROBLEMS 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  

13-29 NPV Profiles Graph the NPV profiles for both projects on a common chart, making sure that you identify all of the “crucial” points. (LG13-5)  

13-30 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? (LG13-5)