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What significance is the cross over point on an NPV profile when comparing two mutually exclusive projects? The crossover point represents the interest rate when
What significance is the cross over point on an NPV profile when comparing two mutually exclusive projects?
The crossover point represents the interest rate when NPV is zero. | ||
The preferable project based on the NPV criteria is the same before and after the crossover point. | ||
The cross over point is often used to compare the various NPVs of mutally exclusive projects. | ||
The preferable project based on the NPV criteria is different before and after the crossover point. |
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