Question
Rizzi Corp. is considering the following two mutually exclusive investment projects: Year Project 1 Project 2 0 -24,000 -24,000 1 10,620 12,100 2 10,900 9,360
Rizzi Corp. is considering the following two mutually exclusive investment projects:
| Year | Project 1 | Project 2 |
| 0 | -24,000 | -24,000 |
| 1 | 10,620 | 12,100 |
| 2 | 10,900 | 9,360 |
| 3 | 10,500 | 10,400 |
What is the crossover rate for these two projects? What does the crossover rate indicate? Show your work
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Fundamentals Of Corporate Finance
Authors: Richard A. Brealey, Marcus, Alan J, Myers, Stewart C.
2nd Edition
0070074860, 9780070074866
