Question: 35. Current Design Co. is considering two mutually exclusive, equally risky, and not repeatable projects, S and L. Their cash flows are shown below. What

35. Current Design Co. is considering two mutually exclusive, equally risky,

35. Current Design Co. is considering two mutually exclusive, equally risky, and not repeatable projects, S and L. Their cash flows are shown below. What is the crossover rate for the projects? What does this rate mean? (5) WACC: 7.50% Year 1 - CFs -$1,100 -$2,700 $550 $650 2 $600 $725 3 $100 $800 $100 $1,400 CFL

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