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Year Project A Project B 0 (48,000) (80,000) 1 19000 19000 2 19000 19000 3 19000 19000 19000 5 6 7 19000 19000 19000 For the above projects find the cross-over point, ie the discount rate where NPV's are equal. Draw a rough draft of the two NPV profiles.

Year Project A Project B 0 (48,000) (80,000) 1 19000 19000 2 19000 19000 3 19000 19000 19000 5 6 7 19000 19000 19000 For the above projects find the cross-over point, ie the discount rate where NPV's are equal. Draw a rough draft of the two NPV profiles.

Essentials Of Investments
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
Section: Chapter Questions
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Year Project A Project B 0 (48,000) (80,000) 1 19000 19000 2 19000 19000 3 19000 19000 19000 5 6 7 19000 19000 19000 For the above projects find the cross-over point, ie the discount rate where NPV's are equal. Draw a rough draft of the two NPV profiles.
Transcribed Image Text:Year Project A Project B 0 (48,000) (80,000) 1 19000 19000 2 19000 19000 3 19000 19000 19000 5 6 7 19000 19000 19000 For the above projects find the cross-over point, ie the discount rate where NPV's are equal. Draw a rough draft of the two NPV profiles.
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