The following information is available on two mutually exclusive projects. Project Year 0 Year 1 Year 2 Year 3 Year 4 A -$700 $200 $300 $400 $500 B -$700 $600 $300 $200 $100 At what cross-over rate would the firm be indifferent between the two projects? Group of answer choices 14.72% 16.53% 29.15% 37.49%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The following information is available on two mutually exclusive projects. 

Project                   Year 0         Year 1          Year 2           Year 3         Year 4

A                           -$700           $200            $300            $400           $500

B                           -$700           $600            $300            $200           $100

 

At what cross-over rate would the firm be indifferent between the two projects?

Group of answer choices
14.72%
16.53%
29.15%
37.49%
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