Question: a company is considering two seperate, mutually exclusive projects A and B. Project A requires an initial investment of $1,000,000 and is expected to generate
a company is considering two seperate, mutually exclusive projects A and B. Project A requires an initial investment of $1,000,000 and is expected to generate after-tax cash flow of $75000 per year forever. project B requires an initial investment of $1,250,000 and is expected to generate after-tax cash flows of $98000 per yesr forever. the appropriate discount rate is 8 percent. what is the crossover rate for projects a and b
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