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37) You are considering the following two mutually exclusive projects. What is the discount rate at which you would be indifferent between these two projects

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37) You are considering the following two mutually exclusive projects. What is the discount rate at which you would be indifferent between these two projects (the crossover rate)? Year 0 1 Project A -$56,000 14,000 33,000 41,000 Project B -$56,000 32,000 24,000 26,000 2 3 37 38) A six-year project has an initial requirement of $308,000 for fixed assets and $22,750for net working capital. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $89,120 and the discount rate is 7.90 percent. (a) What is the Net Present Value? 38 (a) (b) What is the Profitability Index? 38 (b)

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