Jewel is also looking to expand this project to its store on the South side....
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Accounting
Jewel is also looking to expand this project to its store on the South side. If the expected cash flows are as follows, what calculate the crossover rate (where the manager is indifferent between building the nursery on the NW side or the South side?
Year
Cash Flow Jewel North Side
Cash Flow Jewel South Side
0
($6,250.00)
($5,800.00)
1
$2,000.00
$1,800.00
2
$2,025.00
$2,200.00
3
$2,050.00
$2,400.00
4
$2,075.00
$2,000.00
5
$2,100.00
$1,000.00
Group of answer choices
10.20%
11.24%
12.54%
14.00%
Answer & Explanation
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