Project A has an upfront cost of $300 and, starting one year today, pays an annual cash flow of $36 forever (i.e., it is a perpetuity). Project B has an upfront cost of $400 and, starting one year today, pays an annual cash flow of $42 forever (i.e., it is a perpetuity). What is the crossover rate for these two projects? 

Answer rating: 100% (QA)

The crossover rate is the discount rate at which the two ... View the full answer