What interest rate could indifferent between two projects

Assignment Help Cost Accounting

Reference no: EM1375365

Crossover Point. J. Marcel Enterprises has gathered projected cash flows for two projects. At what interest rate could company be indifferent between two projects? Which project is better if needed return is above this interest rate and why?

Year                                    Project I              Project J
0                                          $250,000           $250,000
1                                          1 1 5,000            85,000
2                                          1 03,000             99,000
3                                          87,000                1 01 ,000
4                                          76,000                1 08,000

Reference no: EM1375365

Questions Cloud

Illustrate what are some of the problems aecs facing : Illustrate what are some of the problems AECS facing. Are they inherent in its model or they could be rectified while keeping the model intact.

Evaluate the mirr of the project : Evaluate the MIRR of the project using all three methods - evaluating a project with the subsequent cash flows:

Formulate this problem so as to minimize total production : Each mattress produce price $20; each box spring price $24. Formulate this problem so as to minimize total production price. Solve using the simple method.

Illustrate what is the con present engineering approach : Illustrate what is the Con present Engineering Approach also explain why should project managers be aware of it.

What interest rate could indifferent between two projects : What interest rate could company be indifferent between two projects? Which project is better if needed return is above this interest rate and why?

What describe by department area or organizational system : Identification of the changes which need to be made also a reason for the change. Identification also description of human implications, potential resistance factors also the drivers of the change.

Comparative advantage and specialization : Pat Protectionist thinks the United States imports too many goods from low wage nations like China. Pat will often point out items that have "made in China" labels on them and laments the fact

Mary along with some other female workers of her company : Mary along with some other female workers of her company, has appealed management to increase the length of maternity leave to six months

Describe how much investment also debt to undertake : describe how much investment also debt to undertake during the next yr. Each dollar invested reduces the NPV of my organization by 10 cents also each dollar of debt increases the NPV by 50 cents.

User Account

All Pages