Question: D. You are evaluating two projects with the following cash flows: Year Project X Project Y 0 $549,600 $518,500 1 218,200 207,900 2 228,100 217,700

D.

You are evaluating two projects with the following cash flows:

Year Project X Project Y
0 $549,600 $518,500
1 218,200 207,900
2 228,100 217,700
3 235,300 225,600
4 195,000 186,400

What is the crossover rate for these two projects?

B.

A project has the following cash flows :

Year Cash Flows
0 $11,200
1 4,810
2 6,910
3 4,400
4 1,740

Assuming the appropriate interest rate is 10 percent, what is the MIRR for this project using the discounting approach?

C.

You own a house that you rent for $1,425 per month. The maintenance expenses on the house average $265 per month. The house cost $232,000 when you purchased it 4 years ago. A recent appraisal on the house valued it at $254,000. If you sell the house you will incur $20,320 in real estate fees. The annual property taxes are $3,150. You are deciding whether to sell the house or convert it for your own use as a professional office. What value should you place on this house when analyzing the option of using it as a professional office?

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