Question: Markman & Sons is considering Projects S and L. These projects are mutually exclusive, equally risky, and not repeatable and their cash flows are shown

Markman & Sons is considering Projects S and L. These projects

Markman & Sons is considering Projects S and L. These projects are mutually exclusive, equally risky, and not repeatable and their cash flows are shown below. What's the two projects' crossover rate and which project should the firm choose under 10% discount rate? Year 0 1 2 3 4 CFS-$1,025 $650 $450 $250 $50 CFL -$1,025 $100 $300 $500 $700 9.56% 10.55% 11.12% 12.42% 12.74%

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