Multiple Choice
Kim Lee is analyzing two projects. The first requires a $1,200 initial investment and returns $600 a year for four years. The second project requires a $1,500 initial investment and returns $700 a year
For four years. What is the crossover point for these two projects?
A) 4.25%
B) 6.37%
C) 8.14%
D) 12.59%
E) The crossover point cannot be computed based on the information provided.
Correct Answer:
Verified
Correct Answer:
Verified
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