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 IRR cross-over rate.
A) 5.93%
B) 6.93%
C) 7.93%
D) 8.93%
E) 9.93%
Correct Answer:
Verified
Correct Answer:
Verified
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