The following information is available on two mutually exclusive projects. Project Year 0 Year 1 Year 2 Year 3 Year 4 A -$700 $200 $300 $400 $500 B -$700 $600 $300 $200 $100 At what cross-over rate would the firm be indifferent between the two projects? Group of answer choices 14.72% 16.53% 29.15% 37.49%
The following information is available on two mutually exclusive projects. Project Year 0 Year 1 Year 2 Year 3 Year 4 A -$700 $200 $300 $400 $500 B -$700 $600 $300 $200 $100 At what cross-over rate would the firm be indifferent between the two projects? Group of answer choices 14.72% 16.53% 29.15% 37.49%
Chapter10: Project Cash Flows And Risk
Section: Chapter Questions
Problem 19PROB
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Question
The following information is available on two mutually exclusive projects.
Project Year 0 Year 1 Year 2 Year 3 Year 4
A -$700 $200 $300 $400 $500
B -$700 $600 $300 $200 $100
At what cross-over rate would the firm be indifferent between the two projects?
Group of answer choices
14.72%
16.53%
29.15%
37.49%
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