Question: Moerdyk & Co. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable.

Moerdyk & Co. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. What is the cross-over rate?

Moerdyk & Co. is considering Projects S and L, whose cash flows

WACC: 6.75% 4 $2,400 $250 $450 S1050 $1500 $1,025 $100 $200 $500 $800 CFS CFL

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