Question
Consider the following two mutually exclusive projects: Years Cash flow (A) Cash flow (B) 0 -$10,110 -$10,110 1 $ 5,200 $ 4,300 2 $3,373 $3,543
Consider the following two mutually exclusive projects:
Years Cash flow (A) Cash flow (B)
0 -$10,110 -$10,110
1 $ 5,200 $ 4,300
2 $3,373 $3,543
3 $4,473 $5,343
What is the crossover rate for these two projects?
| a. | 8.22 percent | |
| b. | 8.48 percent | |
| c. | 8.71 percent | |
| d. | 8.75 percent |
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Money And Capital Markets
Authors: Peter Rose, Milton Marquis
10th Edition
0077235800, 9780077235802
