Multiple Choice
Project A has a five-year life and an initial cost of $1,600 and annual cash flows of $600 per year. Project B also has a five-year life and an initial cost of $2,500 with annual cash flows of $850 per
Year. Given this information, calculate the IRR cross-over rate.
A) 12.05%
B) 12.25%
C) 12.45%
D) 12.65%
E) 12.85%
Correct Answer:
Verified
Correct Answer:
Verified
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