SJ Inc is considering the following 2 projects. SJ's WACC is 12%. What is the cross over rate of the projects?

project	Initial cost (t=0)	Yr 1 Cash Flow	Yr 2 Cash Flow	Yr 3 Cash Flow
AIN	-90	10	40	90
DIN	-100	60	55	20

		19.46%
		17.55%
		17.02%
		13.33%

QUESTION 19

1. Jan Corp is considering the following projects:

   Project	NPV	IRR
   MMx2	- $.5 million	15.93%
   xxLL3	$2.1 million	14.02%

   Assuming that Projects MMx2 and xxLL3 are independent what would be the correct decision if Jan Corp's WACC is 14%?

   		Project MMx2.
   		Project xxLL3.
   		Neither Project.
   		Both Projects.