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year R S 0 -60,000 -85,000 1 21,000 19,000 2 24,000 21,000 3 17,000 30,000 4 11,000 37,000 5 9,000 13,000 d. What is the

year R S

0

-60,000 -85,000
1 21,000 19,000
2 24,000 21,000
3 17,000 30,000
4 11,000 37,000
5 9,000 13,000

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d. What is the cross-over rate? Over what discount rates would you choose Project R7 Project S? (3 points) Ans: e. At what discount rate would you be indifferent between the two projects? (3 points) Ans

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