Finding cross over rate
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Using the following table, calculate the cross over rate between the two projects.
Year
0 1 2 3 4 5 6
Project A -$500.00 $200.00 $200.00 $200.00 $100.00 $100.00 $100.00
Project B -$500.00 $0.00 $0.00 $250.00 $250.00 $250.00 $250.00.
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Solution Summary
Solution describes the steps to calculate cross over rate between two given projects.
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Please refer attached file for better clarity of table and formula.
Solution:
Period Project A Project B Difference in cash flows
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Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
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