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Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows: d . What is the crossover rate, and

Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows:

.

What is the crossover rate, and what is its significance?

Crossover rate

=

The crossover rate represents the cost of

capital at which the two projects value, at

a cost of capital of

13.14 %

is:

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