Sun, Inc. is analyzing two projects. Project A requires an initial investment of $2,200 and produces cash inﬂows of $500, $550, $700, and $900 respectively over four years. Project B requires an
Initial investment of $2,400 and produces cash inﬂows of $550, $650, $700, and $1,100
Respectively over four years. What is the crossover point?
A) 14.14%
B) 16.88%
C) 18.32%
D) 19.76%
E) 21.65%

Question

Quizplus · Accepted Answer

The Answer of Sun, Inc. is analyzing two projects. Project A requires an initial investment of $2,200 and produces cash inﬂows of $500, $550, $700, and $900 respectively over four years. Project B requires an
Initial investment of $2,400 and produces cash inﬂows of $550, $650, $700, and $1,100
Respectively over four years. What is the crossover point?
A) 14.14%
B) 16.88%
C) 18.32%
D) 19.76%
E) 21.65%

Sun, Inc Is Analyzing Two Projects