Determine the crossover rate for the two projects


Consider the following two mutually exclusive projects:

Year    Cash Flow (X)             Cash Flow (Y)

0        -$ 20,300                   -$ 20,300          

1             8,925                        10,250          

2             9,250                         7,875

3             8,875                         8,775

What is the crossover rate for these two projects?

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Finance Basics: Determine the crossover rate for the two projects
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