Question: Using Excel (if applicable), CocaCola is considering Projects X and Y, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and

Using Excel (if applicable),

CocaCola is considering Projects X and Y, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. What is the crossover rate and what does it tell management?

WACC:

9%

0

1

2

3

4

CFS

-$1,000

$950

$750

$550

$350

CFL

-$1,000

$500

$600

$700

$1000

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