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1 13,000 19,000 3 19,000 12,000 The crossover point is _____ andproject _____ sh

ID: 2662318 • Letter: 1

Question

1                        13,000              19,000

3                        19,000              12,000

The crossover point is _____ andproject _____ should be accepted at a 14 percent discountrate.

You are considering the followingtwo mutually exclusive projects. Year                 ProjectA          ProjectB 0                     -$32,000          -$32,000   

1                        13,000              19,000

2                        13,000              12,000   

3                        19,000              12,000

The crossover point is _____ andproject _____ should be accepted at a 14 percent discountrate.

a. 16.67 percent; A b. 16.67 percent; B c. 15.47 percent; B d. 12.98 percent; B e. 15.47 percent; A

Explanation / Answer

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