Question
Rossdale Flowers has a new greenhouse project with an initial cost of $316,500 that is expected to generate cash flows of $48,100 for 8 years
Rossdale Flowers has a new greenhouse project with an initial cost of $316,500 that is expected to generate cash flows of $48,100 for 8 years and a cash flow of $63,500 in Year 9. If the required return is 8.6 percent, what is the project's NPV?
$95,328.28
$23,379.38
$16,050.25
$70,467.97
$6,841.38
You are considering the following two mutually exclusive projects. The crossover rate between these two projects is ___ percent and Project ___ should be accepted if the required return is less than the crossover rate.
Year Project A Project B 0 $34,000 $34,000 1 21,500 13,670 2 13,500 11,500 3 13,500 25,100
19.84%; B
9.61%; B
22.27%; A
22.27%; A
9.61%; A
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