At what cost of capital will the net present value

Reference no: EM13279355

A firm is considering the following mutually exclusive projects: Project A Project B Year Cash Flow Cash Flow 0 -$5,000 -$5,000 1 200 3,000 2 800 3,000 3 3,000 800 4 5,000 200 At what cost of capital will the net present value of the two projects be the same? (That is, what is the "crossover" rate?)

Reference no: EM13279355

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