Question: Project A has a five-year life and an initial cost of $2,000 and annual cash flows of $700 per year. Project B also has a

Project A has a five-year life and an initial cost of $2,000 and annual cash flows of $700 per year. Project B also has a five-year life and an initial cost of $3,000 with annual cash flows of $950 per year.

Calculate the corresponding NPV that the cross-over rate provides.

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