Question
The Winston Co. is considering two mutually exclusive projects with the following cash flows. The incremental IRR (cross- over point) is ________ and if the
The Winston Co. is considering two mutually exclusive projects with the following cash flows. The incremental IRR (cross- over point) is ________ and if the required rate is higher than the crossover rate then project _____ should be accepted
| year | (project A) (Cash Flow) | (Project B )cash flow |
| 0 | -$75000 | -$60000 |
| 1 | $30000 | 25000 |
| 2 | $35000 | 30000 |
| 3 | $35000 | 25000 |
what is the answer
a. 13.94%; A
B 13,94%; B
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0324422696
