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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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