At what cost of capital do the two projects have same net

Reference no: EM13276057

Anderson Associates is considering two mutually exclusive projects that have the following cash flows: Year Project A Cash Flow Project B Cash Flow 0 -$10,000 -$8000 1 1,000 7000 2 2,000 1000 3 6,000 1000 4 6,000 1000 At what cost of capital do the two projects have the same net present value? (That is, what is the crossover rate?) Please show work

Reference no: EM13276057

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