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 Firm

Initial investment $30,000 $25,000

Year Operating cash inflows

1 $7,000 $6,000

2 10,000 9,000

3 12,000 9,000

4 10,000 8,000