Question: 7. Bron Bron Designs is considering a project that has the following cash flow and WACC of 10%. What is the project's payback period length?
7. Bron Bron Designs is considering a project that has the following cash flow and WACC of 10%. What is the project's payback period length? Year 0 1 2 3 Cash Flow -$900 300 450 600 A. 1.80 years B 2.00 years C.2.25 years D.2.50 years E. 3.00 years 8. Given the two cash flows for these mutually exclusive projects, along with a required return of 10% for a cach project, determine the crossover rate? (Hint: The parentheses (year 0) mean a negative number) Year Project A Project B 0 (15,500) (15,000) 1 8,850 10,100 2 9,200 7,800 3 8,800 8,700 A. 9.75% B. 10.83% C. 15.439% D. 18.73% E. 22.17%
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