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George is interested in buying one of the two local businesses on sale: a Coffee Shop or a Shoe Store. The cashflows of both the

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George is interested in buying one of the two local businesses on sale: a Coffee Shop or a Shoe Store. The cashflows of both the businesses are shown below. George can borrow from a bank at a rate of 8.00% to buy Coffee Shop and 6.00% to buy Shoe Store Coffee Shop Shoe Store Year -$115,000 $115,000 0 (Purchase Price) $7,188 $51,750 $21,562 $38,812 2 $40,250 $28,750 $50,315 $21,563 $57,500 $14,375 3 4 5 How much is the NPV at the crossover rate? At crossover rate, both projects have the same NPV. Enter your answer in the following format: + or - 1,234; Hint: Answer is between 7,831 and 9,610

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