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Practce Problem 2. I would really apreciate the help, I will give a review if the question is answered with an explination. Thank you. A

Practce Problem 2. I would really apreciate the help, I will give a review if the question is answered with an explination. Thank you.

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A firm is considering investing in technology to produce in an NPV and IRR app which shares answers across financial planners in a conference setting. It is considering one vendor who is presenting you with two packages. Package A (project A) costs $250,000 but it presents stabilized earnings for the first three years and anticipates bigger payoffs in the last two years. Package B (Project B) requires a greater investment today ($500,000) but promises greater returns in the near future and smaller returns near the life of the project. 1. Calculate the cross-over rate for these projects. 2. Define, in your own words, the cross-over rate

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