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10. You are evaluating two projects with the following cash flows: Year Project X Projects Y 0 -550,800 -519,500 1 218,000 207,700 2 227,900 217,500
10. You are evaluating two projects with the following cash flows:
Year | Project X | Projects Y |
0 | -550,800 | -519,500 |
1 | 218,000 | 207,700 |
2 | 227,900 | 217,500 |
3 | 235,100 | 225,400 |
4 | 194,800 | 186,200 |
What is the crossover rate for these two projects?
A.21.84%
B. 22.53%
C. 10.70%
D. 69%
E. 9.73%
11. Matterhorn Mountain Gear is evaulating two projects with the following cash flows:
year | Project x | Project y |
0 | 319,200 | 298,700 |
1 | 146,200 | 137,350 |
2 | 163,700 | 154,550 |
3 | 128,800 | 120,300 |
What interest rate will make the NPV for the projects equal?
A. 18.14
B. 12.55
C. .28
D. 14.12
E. 18.13
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