Question

Find the crossover rate with the following information Required rate of return: 10.25% Year                         year0  &

Find the crossover rate with the following information

Required rate of return: 10.25%

Year                         year0          year1          year2          year3          year4

CFS                         -$2,050         $750           $760           $770          $780

CFL                        -$4,300       $1,500        $1,518        $1,536        $1,554

a.   14.79%

b.   14.18%

c.   13.27%

d.   16.29%

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