Question

In: Finance

You are evaluating two projects with the following cash flows: Year Project X Project Y 0...

You are evaluating two projects with the following cash flows:

Year Project X Project Y
0 −$552,600 −$521,000
1 217,700 207,400
2 227,600 217,200
3 234,800 225,100
4 194,500 185,900

What is the crossover rate for these two projects?

Solutions

Expert Solution

Solution :

The cross over rate for the two projects is = 9.28 %

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.


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