What is the crossover point for the two projects

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Reference no: EM132886092

Question - Consider two projects with the following cash flows:

Year

Project 1 Cash Flow

Project 2 Cash Flow

0

-$2,000

-$1,900

1

500

1,100

2

700

900

3

800

800

4

1,000

600

5

1,100

400

Required -

a) What is the NPV @ 10% of project 2?

b) What is the IRR of project 2?

c) What is the MIRR @ 9% of project 1 with a re-investment rate of 5%?

d) What is the Payback period of project 1?

e) What is the crossover point for the two projects?

Reference no: EM132886092

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