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QUESTION 30 Year 0 1 Project 1 Project 2 Cash Flow Cash Flow -$2,000 $1,900 500 1,100 700 900 800 800 1,000 600 1,100 400

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QUESTION 30 Year 0 1 Project 1 Project 2 Cash Flow Cash Flow -$2,000 $1,900 500 1,100 700 900 800 800 1,000 600 1,100 400 2 3 4 5 Calculate the cross over rate (hint: try each rate and see which one brings the two projects' NPV equal) 5.37% 5.85% 5.89% 5,40%

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