A sketch the npv profiles for each project b what is

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a. Sketch the NPV profiles for each project.b.What is the IRR for each of these projects? If you apply the IRR decision rule, which project should the company accept? Is this decision necessarily correct?c.If the required return is 6%, what is the NPV for each of these projects? Which project will you choose if you apply the NPV decision rule?d.Over what range of discount rates would you choose Project A? Project B? At what discount rate are you indifferent between these two projects? Explain.Example 11: Consider the following cash flows on two mutually exclusive projects that require an annual return of 15%. Working in the financial planning department for the Bahamas Recreation Corp., you are trying to compare different investment criteria to arrive at a sensible choice of these two projects.YearDeepwaterFishingNew SubmarineRide0-$600,000-$1,800,0001270,0001,000,0002350,000700,0003300,000900,000a)Based on the payback method, which project should be chosen?b)Based on the discounted payback method, which project should be chosen?c)If you decision rule is to accept the project with a greater IRR, which project would you chose?d)What is the NPV for each project? Using the NPV rule, which project should be chosen?e)Sketch the NPV profiles for these projects.f)What is the crossover rate for these two projects?g)Based on the Profitability Index, which project should be chosen?19

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