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Mahjong, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $40,000 $40,000 1 19,300 5,700 2 14,800
Mahjong, Inc., has identified the following two mutually exclusive projects:
Year | Cash Flow (A) | Cash Flow (B) |
0 | $40,000 | $40,000 |
1 | 19,300 | 5,700 |
2 | 14,800 | 12,200 |
3 | 12,300 | 18,700 |
4 | 9,300 | 22,700 |
Calculate the cross-over point (i.e., the point where the NPVs for the two projects are equal).
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