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2. Gurdreep is analyzing two projects. The first requires a $ 24,000 initial investment and returns...

2. Gurdreep is analyzing two projects. The first requires a $ 24,000 initial investment and returns $12,000 a year for four years. The second project requires a $30,000 initial investment and returns $14,000 a year for four years. What is the crossover point for these two projects?



i need answer now on copy write

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Expert Solution

The crossover point for two projects is the point calculated in excel as IRR of differential cash flow of two projects.

Therefore, the crossover rate is 12.59%

jeff jeffy answered 1 year ago
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