Calculate the projects crossover rate and npv

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Gardial Fisheries is considering two independent investments. Assume that each project's cost of capital is 10%. The projects' expected net cash flows are as follows:

Expected Net Cash Flows

Time Project A Project B
0 ($950) ($850)
1 $350 $280
2 $450 $350
3 $200 $500
4 $600 $400
5 $800 $750

Calculate the projects' crossover rate and NPV at the cross over rate.

Reference no: EM132705002

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