Woodson Inc.has two possible projects, Project A and Project B, with the following cash flows: At what required rate of return do the two projects have the same net present value (NPV)? (In other words, what is the "crossover rate" of the projects' NPV profiles?)

Question

Woodson Inc.has two possible projects, Project A and Project B, with the following cash flows:  At what required rate of return do the two projects have the same net present value (NPV)? (In other words, what is the "crossover rate" of the projects' NPV profiles?)

Quizplus · Accepted Answer

The Answer of Woodson Inc.has two possible projects, Project A and Project B, with the following cash flows:  At what required rate of return do the two projects have the same net present value (NPV)? (In other words, what is the "crossover rate" of the projects' NPV profiles?)