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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