Question

Projects A and B are mutually exclusive and both have an initial cost of $88,000. Project A has annual cash flows for three years of $18,300, $34,500, and $52,300, respectively. Project B has annual cash flows for three years of $26,400, $30,900, and $43,700. What is the crossover rate? |

Select one:

a.

27.63 percent |

b.

25.30 percent |

c.

18.32 percent |

d.

13.33 percent |

e.

9.74 percent |

Answer #1

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