Question
C. Following cash flows are given for two mutually exclusive projects. Calculate the cross-over rate between these two projects. Assume any percentage (any number higher
C.
Following cash flows are given for two mutually exclusive projects. Calculate the cross-over rate between these two projects.
Assume any percentage (any number higher than cross over rate) as cost of capital for these projects. Give your decision to accept/reject project/s and explain your answer.
Year Project A Project B
0 -$4,500 -$4,500
1 1,300 2,500
2 1,000 2,000
3 3,500 1,000
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
6th Edition
1260226786, 9781260226782
