Multiple Choice
Project A has a five-year life and an initial cost of $2,000 and annual cash flows of $700 per year. Project B also has a five-year life and an initial cost of $3,000 with annual cash flows of $950 per year. Given this information, calculate the NPV that the IRR cross-over rate provides.
A) ($594.16)
B) ($216.48)
C) $328.87
D) $800.00
E) $1,041.50
Correct Answer:
Verified
Correct Answer:
Verified
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