Project A has cash flows of -$82,000, $27,500, $30,000 and $45,000 for years 0 to 3, respectively. Project B has an initial cost of $60,000 and an annual cash inflow of $25,000 for three years. These are mutually exclusive projects. What is the crossover rate?

Answer rating: 100% (QA)

The crossover rate is the discount rate at which the net present value NPV of two projects becomes e... View the full answer