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Anderson Associates is considering two mutually exclusive projects that have the following cash flows: Project A...

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Finance

Anderson Associates is considering two mutually exclusiveprojects that have the following cash flows: Project A Project BYear Cash Flow Cash Flow

0 -$11,000 -$9,000

1 4,500 6,000

2 3,000 4,000

3 5,000 3,000

4 9,000 2,000

At what cost of capital do the two projects have the same netpresent value? (That is, what is the crossover rate?) Enter youranswer rounded to two decimal places. Do not enter % in the answerbox. For example, if your answer is 0.12345 or 12.345% then enteras 12.35 in the answer box.

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Anderson Associates is considering two mutually exclusiveprojects that have the following cash flows: Project A Project BYear Cash Flow Cash Flow0 -$11,000 -$9,0001 4,500 6,0002 3,000 4,0003 5,000 3,0004 9,000 2,000At what cost of capital do the two projects have the same netpresent value? (That is, what is the crossover rate?) Enter youranswer rounded to two decimal places. Do not enter % in the answerbox. For example, if your answer is 0.12345 or 12.345% then enteras 12.35 in the answer box.

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