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You are considering the following two mutually exclusive projects. The crossover point is _____ and Project _____ should be accepted if the discount rate for
You are considering the following two mutually exclusive projects. The crossover point is _____ and Project _____ should be accepted if the discount rate for the project exceeds the crossover rate.
Year | Project 1 | Project 2 |
0 | -7000 | 7000 |
1 | 2500 | 1400 |
2 | 3800 | 3400 |
3 | 2600 | 4400 |
11.02 percent; A | ||
9.93 percent; A | ||
11.02 percent; B | ||
9.54 percent; B | ||
9.93 percent; B |
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