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You've estimated the following cash flows (in $ million) for two mutually exclusive projects: Year Project A Project B 0 -28 -43 1 30 45
You've estimated the following cash flows (in $ million) for two mutually exclusive projects:
| Year | Project A | Project B |
| 0 | -28 | -43 |
| 1 | 30 | 45 |
| 2 | 40 | 50 |
Part 1
What is the crossover rate, i.e., the discount rate at which both projects have the same NPV?
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