Question: You are considering the following two mutually exclusive projects. What is the discount rate at which you would be indifferent between these two projects (the
You are considering the following two mutually exclusive projects. What is the discount rate at which you would be indifferent between these two projects (the crossover rate)?
Please no excel and can you solve it step by step and sort of explain why?
| Year | Project A | Project B |
| 0 | -$56,000 | -$56,000 |
| 1 | 14,000 | 32,000 |
| 2 | 33,000 | 24,000 |
| 3 | 41,000 | 26,000 |
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