Darin Clay, the CFO of MakeMoney.com, has to decide between the following two projects: Year 0 1 2 3 Project Million -$2,800 10 + 320 1,120 2,000 Project Billion -$10 lo + 1,200 2,000 3,200 The expected rate of return for either of the two projects is 13 percent. What is the range of initial investment (/o) for which Project Billion is more financially attractive than Project Million? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Initial investment

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Darin Clay, the CFO of MakeMoney.com, has to decide between the following two
projects:
Year
0
1
2
3
Project
Million
-$ 2,800
10 + 320
1,120
2,000
Project Billion
-$10
/0 +1,200
2,000
3,200
The expected rate of return for either of the two projects is 13 percent. What is the range
of initial investment (/o) for which Project Billion is more financially attractive than Project
Million? (Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
Initial investment
Transcribed Image Text:Darin Clay, the CFO of MakeMoney.com, has to decide between the following two projects: Year 0 1 2 3 Project Million -$ 2,800 10 + 320 1,120 2,000 Project Billion -$10 /0 +1,200 2,000 3,200 The expected rate of return for either of the two projects is 13 percent. What is the range of initial investment (/o) for which Project Billion is more financially attractive than Project Million? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Initial investment
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