Project A has a ﬁve-year life and an initial cost of $1,600 and annual cash ﬂows of $600 per year. Project B also has a ﬁve-year life and an initial cost of $2,500 with annual cash ﬂows of $850 per
Year. Given this information, calculate the NPV that the IRR cross-over rate provides.
A) $400
B) $560
C) $600
D) $700
E) $800

Question

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The Answer of Project A has a ﬁve-year life and an initial cost of $1,600 and annual cash ﬂows of $600 per year. Project B also has a ﬁve-year life and an initial cost of $2,500 with annual cash ﬂows of $850 per
Year. Given this information, calculate the NPV that the IRR cross-over rate provides.
A) $400
B) $560
C) $600
D) $700
E) $800

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