Woodson Inc

question 56

Multiple Choice

Woodson Inc.has two possible projects,Project A and Project B,with the following cash flows: At what required rate of return do the two projects have the same net present value (NPV) ? (In other words,what is the "crossover rate" of the projects' NPV profiles?)

• A) 10.3%
• B) 13.5%
• C) 15.8%
• D) 21.7%
• E) 34.8%