Question: Required Rate 8% Year 0 1 2 3 4 5 Project A $(16,000) $8,200 $6,200 $5,900 $2,300 $1,200 Project B $(27,000) $5,000 $6,400 $8,400 $13,400
Required Rate 8% Year 0 1 2 3 4 5 Project A $(16,000) $8,200 $6,200 $5,900 $2,300 $1,200 Project B $(27,000) $5,000 $6,400 $8,400 $13,400 $10,200
In excel, calculate all of the items below for both projects and write in your results for each project. Net Present Value @8%. Internal Rate of Return. Profitability Index @8%. Payback (3 year cutoff).
What is the crossover rate and the net present value at that rate?
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