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xiaoyu000 xiaoyu000
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A year ago
Anderson Associates is considering two mutually exclusive projects that have the following cash flows:

​

​

​

Project A

Project B

Year

Cash Flow

Cash Flow

0

–$12,000

–$9,000

1

2,000

8,000

2

3,000

1,000

3

7,000

2,000

4

9,000

3,000

​

​

​

At what cost of capital do the two projects have the same NPV? (That is, what is the crossover rate?)



▸

15.07%



▸

15.86%



▸

16.03%



▸

16.95%

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
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ikiddingikidding
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A year ago
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xiaoyu000 Author
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A year ago
Thank you, thank you, thank you!
momochiime
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Yesterday
this is exactly what I needed
MAry1395
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2 hours ago
Thanks for your help!!
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