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2 You are considering the folliowing two mutually exckusive projects, T The crossover point is and Projectshould be accepted if th discount rate for the

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2 You are considering the folliowing two mutually exckusive projects, T The crossover point is and Projectshould be accepted if th discount rate for the project exceeds the crossover rate Project A Project B $4,500$4,500 1.300 2,500 1000 2,000 3,500 1.000 Year 3. An investment has an initial cost of $2.30 million and will generate the net income amounts shown below. This investment will be depreciated straight line to zero over the life of the project. Should this project be accepted based on the average accounting rate of return if the required rate Is 16 percent? Why or why not? Year Net income $168.300 $181.200 $128,700 $252400 $230.500 4 What is the payback period for a $20.000 investment with following cash flows? Cash flow$2.700 8300$6.800 $4800 $2200

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