Question
Using the following, please answer the next 7 questions: Two projects have the following cash flows and the WACC is 10%: TIME FCFF (A) FCFF
Using the following, please answer the next 7 questions: Two projects have the following cash flows and the WACC is 10%:
| TIME | FCFF (A) | FCFF (B) |
| 0 | -725 | -550 |
| 1 | 100 | 300 |
| 2 | 200 | 200 |
| 3 | 200 | 200 |
| 4 | 200 | |
| 5 | 350 |
If you created an NPV profile for the two projects, what discount rate would be the crossover point? Put answer in decimal form (not percent) and round to four decimal places (e.g., 0.0123)
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Creative Cash Flow Reporting Uncovering Sustainable Financial Performance
Authors: Charles W. Mulford, Eugene E. Comiskey
1st Edition
0471469181, 978-0471469186
