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Acme Inc. is considering the following two mutually exclusive projects with a WACC of 11%. At what interest rate will the two projects have the
Acme Inc. is considering the following two mutually exclusive projects with a WACC of 11%. At what interest rate will the two projects have the same net present value (whats the crossover rate)?
Year | Coyote Rockets | Rocket-Powered Roller Blades |
0 | -500 | -1000 |
1 | 250 | 350 |
2 | 350 | 600 |
3 | 400 | 700 |
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