Project A has a ﬁve-year life and an initial cost of $2,000 and annual cash ﬂows of $700 per year. Project B also has a ﬁve-year life and an initial cost of $3,000 with annual cash ﬂows of $950 per
Year. Given this information, calculate the NPV that the IRR cross-over rate provides.
A) ($594.16)
B) ($216.48)
C) $328.87
D) $800.00
E) $1,041.50

Question

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The Answer of Project A has a ﬁve-year life and an initial cost of $2,000 and annual cash ﬂows of $700 per year. Project B also has a ﬁve-year life and an initial cost of $3,000 with annual cash ﬂows of $950 per
Year. Given this information, calculate the NPV that the IRR cross-over rate provides.
A) ($594.16)
B) ($216.48)
C) $328.87
D) $800.00
E) $1,041.50

Project a Has a ﬁVe-Year Life and an Initial Cost