Cooper Electronics uses NPV profiles to visually evaluate competing projects. Key data for the two projects under consideration are given in the following table. Using these data, graph, on the same set of axes, the NPV profiles for each project using discount rates of 0%, 8%, and the IRR.
Terra Firma
$30,000 $25,000
Initial Investment
Year Operating cash inflows
1 $7000 $6,000
2 10,000 9,000
3 12,000 9,000
4 10,000 8,000
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