Question
Crenshaw has gathered projected cash flowsfor two mutually exclusive projects as shown below. Year I J 0 -$189,000 -$189,000 1 93,500 73,600 2 84,600 72,800
Crenshaw has gathered projected cash flowsfor two mutually exclusive projects as shown below.
Year I J
0 -$189,000 -$189,000
1 93,500 73,600
2 84,600 72,800
3 63,200 76,800
4 57,800 84,000
What is the crossover point interest rate? At what interest rate would the company be indifferent between the two projects?
Which project is better above the crosover interest rate?
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The Changing Geography Of Banking And Finance
Authors: Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro
1st Edition
1441947205, 978-1441947208
