Question
In: Finance
You are considering the following two mutually exclusive projects. The crossover rate between these two projects...
You are considering the following two mutually exclusive projects. The crossover rate between these two projects is ___ percent and Project ___ should be accepted if the required return is greaterthan the crossover rate.
| Year | Project A | Project B | ||||
| 0 | −$30,000 | −$30,000 | ||||
| 1 | 11,500 | 19,630 | ||||
| 2 | 11,500 | 9,500 | ||||
| 3 | 19,500 | 11,650 |
Solutions
jeff jeffy answered 2 years agoRelated Solutions
You are considering the following two mutually exclusive projects. The crossover rate between these two projects...
You are considering the following two mutually exclusive
projects. The crossover rate between these two projects is ___
percent and Project ___ should be accepted if the required return
is greater than the crossover rate.
Year
Project A
Project B
0
−$26,000
−$26,000
1
9,500
17,590
2
9,500
7,500
3
17,500
9,610
rev: 05_02_2019_QC_CS-167236, 05_09_2019_QC_CS-168369,
09_24_2019_QC_CS-182411
Multiple Choice
18.39%; A
11.89%; B
16.97%; B
11.89%; A
16.97%; A
You are considering the following two mutually exclusive projects. The crossover rate between these two projects...
You are considering
the following two mutually exclusive projects. The crossover rate
between these two projects is ___ percent and Project ___ should be
accepted if the required return is greater than the crossover
rate.
Year
Project A
Project B
0
−$24,000
−$24,000
1
8,500
16,570
2
8,500
6,500
3
16,500
8,590
Multiple Choice
12.17%; B
12.17%; A
17.82%; A
16.49%; A
16.49%; B
You are considering the following two mutually exclusive projects. The crossover rate between these two projects...
You are considering the following two mutually exclusive
projects. The crossover rate between these two projects is ___
percent and Project ___ should be accepted if the required return
is greater than the crossover rate.
Year
Project A
Project B
0
−$39,000
−$39,000
1
21,500
13,720
2
13,500
11,500
3
13,500
25,600
12.85%; B
12.52%; A
12.52%; B
12.93%; A
12.93%; B
Considering two mutually exclusive projects. The crossover rate between these two projects is ___ percent and...
Considering two mutually exclusive projects. The crossover rate
between these two projects is ___ percent and Project ___ should be
accepted if the required return is less than the crossover
rate.
Year
Project A
Project B
0
−$27,000
−$27,000
1
10,000
18,100
2
10,000
8,000
3
18,000
10,120
11.75%; A
11.75%; B
17.19%; B
18.64%; A
17.19%; A
You are considering the following two mutually exclusive projects. The crossover point is _____ percent. YEAR...
You are considering the following two mutually exclusive
projects. The crossover point is _____ percent.
YEAR PROJECT A PROJECT B
0 -$16,000 -$16,000
1 11,000 5,000
2 8,000 7,000
3 3,000 12,000
PLEASE SHOW WORK WITHOUT USING EXCEL PLEASE THE ANSWER IS
14.42
Seether inc has the following two mutually exclusive projects available. What is the crossover rate for...
Seether inc has the following two mutually exclusive projects
available.
What is the crossover rate for these two projects? What is the
NPV of each project at the crossover rate?
Year Project R Project S
0
-45000
-76000
1
17000
20000
2
19000
20000
3
21000
35000
4
9000
30000
5
7000
10000
You are considering the following two mutually exclusive projects that will not be repeated. The required...
You are considering the following two mutually exclusive
projects that will not be repeated. The required rate of return is
11.25% for project A and 10.75% for project B. Which project should
you accept and why?
Year Project A Project B
0 -48,000 -126,900
1 18,400 69,700
2 31,300 80,900
3 11,700 0
project A; because its NPV is about $335 more than the NPV of
project B
project A; because it has the higher required rate of return
project...
You are considering the following two mutually exclusive projects. If the cost of capital for both...
You are considering the following two mutually exclusive
projects. If the cost of capital for both projects is 7%, which
statement concerning capital-budgeting rules listed will be correct
in this situation?
Time
Year
0
Year
1
Year
2
Year
3
Project
A
-
$567
$300
$400
$300
Project
B
-
$296
$500
$100
$50
a)
Both NPV and IRR will choose the correct
project(s).
b)
Neither NPV nor IRR will choose the correct project(s).
c)
NPV will choose the correct...
You are considering the following three mutually exclusive projects. The required rate of return for all...
You are considering the following three mutually exclusive
projects. The required rate of return for all three projects is
14%.
Year A B C
0 $ (1,000) $(5,000) $(50,000)
1 $ 300 $ 1,700 $ 0
2 $300 $ 1,700 $15,000
3 $ 600 $1,700 $ 28,500
4 $300 $1,700 $ 33,000
What is the IRR of the best project? % terms to 2 decimal places
w/o % sign
Wilson’s Market is considering two mutually exclusive projects that will not be repeated. The required rate...
Wilson’s Market is considering two mutually exclusive projects
that will not be repeated. The required rate of return is 13.9
percent for Project A and 12.5 percent for Project B.
Project A has an initial cost of $54,500, and should produce
cash inflows of $16,400, $28,900, and $31,700 for Years 1 to 3,
respectively.
Project B has an initial cost of $69,400, and should produce
cash inflows of $0, $48,300, and $42,100, for Years 1 to 3,
respectively.
Based on...
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