Question
You are comparing two mutually exclusive projects. Both projects have an initial cost of $43,500 . Project A has cash inflows of $24,500 , $21,500
| You are comparing two mutually exclusive projects. Both projects have an initial cost of $43,500 . Project A has cash inflows of $24,500 , $21,500 , and $18,500 over the next 3 years, respectively. Project B has cash inflows of $13,500 , $16,900 and $39,500 over the next 3 years. What is the crossover rate for Projects A and B? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The crossover rate is the discount rate at which the net present value NPV of two projects becomes e...
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Fundamentals of Engineering Economics
Authors: Chan S. Park
3rd edition
132775425, 132775427, 978-0132775427
