ZumBahlen Inc. is considering the following mutually exclusive projects: At what cost of capital will the NPV of the two projects be the same? (That is, what is the "crossover" rate?)
A) 16.15%
B) 16.74%
C) 17.33%
D) 17.80%

Question

ZumBahlen Inc. is considering the following mutually exclusive projects:  At what cost of capital will the NPV of the two projects be the same? (That is, what is the "crossover" rate?)
A) 16.15% 
B) 16.74% 
C) 17.33% 
D) 17.80%

Quizplus · Accepted Answer

The Answer of ZumBahlen Inc. is considering the following mutually exclusive projects:  At what cost of capital will the NPV of the two projects be the same? (That is, what is the "crossover" rate?)
A) 16.15% 
B) 16.74% 
C) 17.33% 
D) 17.80%