Question
Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 -19,000 -19,000 1 10,800 6,840 2 8,630 9,410 3 5,210
Consider the following two mutually exclusive projects:
Year Cash Flow (X) Cash Flow (Y)
0 -19,000 -19,000
1 10,800 6,840
2 8,630 9,410
3 5,210 9,300
Sketch the NPV profiles for X and Y over a range of discount rates from zero to 25 percent. What is the crossover rate for these two projects?
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Management Science The Art Of Modeling With Spreadsheets
Authors: Stephen G. Powell, Kenneth R. Baker
3rd Edition
0470530677, 978-0470530672
