Question: Projects A and B are mutually exclusive. Project A has cash flows of -$20,000, $7,500, $6,500, and $4,500 for years 0 to 3, respectively.

Projects A and B are mutually exclusive. Project A has cash flows

Projects A and B are mutually exclusive. Project A has cash flows of -$20,000, $7,500, $6,500, and $4,500 for years 0 to 3, respectively. Project B has cash flows of -$17,500, $6,000, $4,500, and $5,000 for years 0 to 3, respectively. What is the crossover rate for these two projects?

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ANSWER The crossover rate is the discount rate at which the net present value NPV profiles ... View full answer

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