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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