8. The (net) cash flows of project C and D are shown below: Net Cash...

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Finance

8. The (net) cash flows of project C and D are shown below: Net Cash Flow ($) Year Project C Project D 0 -2,000 -1,000 1 3,000 650 2 125 1,500 a. Find the crossover rates. (1.5 point) b. The cost of capital is 12 percent. If C and D are mutually exclusive, which project should be accepted? Why? (0.5 point)

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