Consider the following two mutually exclusive projects: Year                 Cashflow (a)             Cashflow (b) 0                       -$10,110                    -$10,110 1                        $5,373                       $4,443 2                        $3,373                        $3,543 3                        $4,473                       $5,343 What is the crossover rate for these two projects?

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Consider the following two mutually exclusive projects:

Year                 Cashflow (a)             Cashflow (b)

0                       -$10,110                    -$10,110

1                        $5,373                       $4,443

2                        $3,373                        $3,543

3                        $4,473                       $5,343

What is the crossover rate for these two projects?

Expert Solution
Calculate the cross over rate as follows:

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