Question: You are considering the following two mutually exclusive projects. The crossover point is _____ and Project _____ should be accepted if the discount rate for
You are considering the following two mutually exclusive projects. The crossover point is _____ and Project _____ should be accepted if the discount rate for the project exceeds the crossover rate.
| Year | Project 1 | Project 2 |
| 0 | -7000 | 7000 |
| 1 | 2500 | 1400 |
| 2 | 3800 | 3400 |
| 3 | 2600 | 4400 |
| 11.02 percent; A | ||
| 9.93 percent; A | ||
| 11.02 percent; B | ||
| 9.54 percent; B | ||
| 9.93 percent; B |
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