Question: Question in photo Crossover Point Crenshaw Enterprises has gathered projected cash flows for two projects. At what interest rate would the company be indifferent between

Question in photo
Crossover Point Crenshaw Enterprises has gathered projected cash flows for two projects.

Crossover Point Crenshaw Enterprises has gathered projected cash flows for two projects. At what interest rate would the company be indifferent between the two projects? Which project is better if the required return is above this interest rate? Why? Year 1 2 3 4 Project I -$197,000 95,500 87,600 65,200 59,800 Project J -$197,000 72,600 77,800 81,400 87,000

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