Mutually Exclusive Investments Consider the following two mutually exclusive investments. Calculate the IRR for each and the crossover rate. Under what circumstances will the IRR and NPV criteria rank the two projects differently?
Investment B | Investment A | Year |
-$75 | -$75 | 0 |
60 | 20 | 1 |
50 | 40 | 2 |
15 | 70 | 3 |