supersharpshooter Wrote: ------------------------------------------------------- > daj224 Wrote: > -------------------------------------------------- > ----- > > supersharpshooter Wrote: > > > -------------------------------------------------- > > > ----- > > > Pretty good question > > > > > > > > > > > > yeah it is – and I am lost on it, this sucks, > as > > time passes, I forget what I learned weeks ago. > I > > used to be good at corporate finance : ( > > > > can someone break it out ?? > > The crossover rate is the rate at which their > NPV’s are equal (take a look at an NPV profile) - > this means that the NPV of project A equals > project B at 9%. Find the NPV of project A > ($4.51), find the NPV of project B with an initial > cash outflow of 0 ($8.73) and so for the NPV’s to > be equal project B’s initial outflow must be > (8.73-4.51) = 4.22 outflow THANKS, I GOT IT…TURNS OUT I WAS ON THE RIGHT PATH, I JUST FREAKED OUT AND HIT MY CALCULATOR NPV BUTTON SO FAST IT WAS READING WRONG. I LIKE THE START @ 0 CASH FLOW AND SUBTRACT WAY, TOO. GOOD METHOD