Question: Question 17 (CHAPTER 9) Two projects have the following estimated cash flows: Today 1 year from today 2 years from today 3 years from today
Question 17 (CHAPTER 9) Two projects have the following estimated cash flows: Today 1 year from today 2 years from today 3 years from today Project "A" $70,000 $30,000 $33,000 $45,000 Project "B" -$70,000 $25,000 $31,000 $55,000 Calculate the "crossover rate", in percent. (Do NOT use "%" in your answer. Round you answer to TWO decimal places. For example, if your IRR is 12.34%, put 12.34) TRUE or FALSE? If the two projects are mutually exclusive, then the project that is prefe at a discount rate right below the crossover rate will be the opposite project of that preferred at a discount rate right above the crossover rate
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