Explain determining cross over rate by computing net present

Reference no: EM1313211

Explain Determining cross over rate by computing net present value

Suppose that the riskiness of the projects is identical. Create an NPV profile and determine the cross over rate. What does this tell us about the characteristics of the two projects?

Project	Cost ($)	Cash Flow 1 ($)	Cash Flow 2 ($)	Cash Flow 3 ($)

Alpha	$10,000	$2,000	$5,000	$7,000
Gamma	$10,000	$6,000	$7,000	$3,000

Reference no: EM1313211

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