Question
Consider the following table that shows expected annual cash flows from a proposed investment for two mutually exclusive projects, A and B. Year Cash Flow
Consider the following table that shows expected annual cash flows from a proposed investment for two mutually exclusive projects, A and B.
| Year | Cash Flow A | Cash Flow B |
| 0 | $50 | $50 |
| 1 | $30 | $12 |
| 2 | $20 | $22 |
| 3 | $12 | $30 |
What is the crossover rate for these two projects?
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Essential Mathematics For Economic Analysis
Authors: Knut Sydsaeter, Peter Hammond
3rd Edition
0273713248, 9780273713241
