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4 pts Question 6 Questions AS-A7 are based on the following information. You are considering...

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Finance

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4 pts Question 6 Questions AS-A7 are based on the following information. You are considering two projects that are independent. Your firm has access to $570,000 only. The cost of capital for both projects is 10%. Project A costs $180,000 and generates cash flows of $36,000 per year for 15 years. Project B costs $300,000 and generates cash flows of $50,000 per year for 15 years. Ad. Assume that you want to assess these projects on the NPV capital budgeting criterion. What is the cross-over point for these two projects, the cost of capital at which their relative ranking changes? (a) 7.977% (b) 13.858% (0) 14.269% (d) 8.428% lel 10.949% OB OC Od

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