Assuming an 11 percent cost of capital, what is this project’s NPV and its IRR? Draw this project’s
NPV profile on the same graph with the earlier project and then discuss the complete graph.
Be sure to talk about (1) mutually exclusive versus independent projects, (2) conflicts between
projects, and (3) the effect of the cost of capital on the existence of conflicts. What conditions
must exist with respect to timing of cash flows and project size for conflicts to arise?