Mutually exclusive projects-the crossover rate for projects

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Reference no: EM131049084

Swenson’s is considering two mutually exclusive projects, Projects A and B, and has determined that the crossover rate for these projects is 11.7 percent. Given this you know that:

Both projects have a negative NPV at discounts rates greater than 11.7 percent.

The project that is preferred at a discount rate of 11 percent will be the opposite project of that preferred at a discount rate of 12 percent.

Both projects have a zero NPV at a discount rate of 11.7 percent.

Both projects provide an internal rate of return of 11.7 percent.

Neither project will be accepted if the discount rate is less than 11.7 percent.

Reference no: EM131049084

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