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Business, 22.04.2020 04:47 parkerfreeze

You are considering the following two mutually exclusive projects. The crossover rate between these two projects is ___ percent and Project ___ should be accepted if the required return is greater than the crossover rate.

Year Project A Project B
0 −$29,000 −$29,000
1 11,000 19,120
2 11,000 9,000
3 19,000 11,140

Multiple Choice
a. 9.35%; B
b. 14.24%; A
c. 14.24%; B
d. 8.29%; A
e. 8.29%; A

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Answers: 2

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