Question: Suppose you are evaluating two mutually-exclusive projects, Project Alpha and Project Omega. You have estimated the following expected cash flows: Year Project Alpha Project Omega

Suppose you are evaluating two mutually-exclusive projects, Project Alpha and Project Omega. You have estimated the following expected cash flows:

Year Project Alpha Project Omega
0 -$72,000.00 -$65,000.00
1 $23,000.00 $30,000.00
2 $32,000.00 $30,000.00
3 $40,000.00 $25,000.00

If you plot NPV profiles for the projects on the same chart, what will be the crossover rate?

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