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Murray Inc. is considering Projects and L, whose cash flows are shown below. These projects are mutually exclusive, equally r
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Answer #1

rate positively .. formula in pic..

Cross over rate is the rate at which both the project will have same NPv
Year CFS CFL Delta (L-S)
0 -1025 -2150 -1125
1 380 755 375
2 380 755 375
3 380 755 375
4 380 755 375
Cross over rate = 12.59%
ans = 12.59%
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