QUESTION 21 Bravossi Inc. has two projects with the following cash flows: Year Project 1 Project 2 0 (3,000.00) (2,400.00) 1 1,000.00 1,500.00 2 ?? 800.00 3 1,500.00 ?? 4 1,800.00 1,400.00 IRR 26.2307% 33.8369% What is the crossover...

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Finance

QUESTION 21

  1. Bravossi Inc. has two projects with the following cashflows:

Year

Project 1

Project 2

0

(3,000.00)

(2,400.00)

1

1,000.00

1,500.00

2

??

800.00

3

1,500.00

??

4

1,800.00

1,400.00

IRR

26.2307%

33.8369%


  1. What is the crossover rate?

a.

8.4261%

b.

8.2041%

c.

7.6739%

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Transcribed Image Text

QUESTION 21Bravossi Inc. has two projects with the following cashflows:YearProject 1Project 20(3,000.00)(2,400.00)11,000.001,500.002??800.0031,500.00??41,800.001,400.00IRR26.2307%33.8369%What is the crossover rate?a.8.4261%b.8.2041%c.7.6739%

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