McCarver Inc. is considering the following mutually exclusive projects: Year Project A Cash Flow Project B...
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McCarver Inc. is considering the following mutually exclusive projects: Year Project A Cash Flow Project B Cash Flow 01234 0 -$5,000 -$5,000 400 4,000 600 1,900 3,000 5,000 800 200 At what cost of capital will the net present value of the two projects be the same? (That is, what is the "crossover" rate?) Round it to one decimal place in percentage, e.g., 10.5. McCarver Inc. is considering the following mutually exclusive projects: Year Project A Cash Flow Project B Cash Flow 01234 0 -$5,000 -$5,000 400 4,000 600 1,900 3,000 5,000 800 200 At what cost of capital will the net present value of the two projects be the same? (That is, what is the "crossover" rate?) Round it to one decimal place in percentage, e.g., 10.5.
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