Hungry Hoagie's has identified the following two mutually exclusive projects: At what rate would you be indifferent between these two projects?
A)17.34 percent
B)17.72 percent
C)19.41 percent
D)19.69 percent
E)20.28 percent

Question

Hungry Hoagie's has identified the following two mutually exclusive projects:  At what rate would you be indifferent between these two projects?
A)17.34 percent 
B)17.72 percent 
C)19.41 percent 
D)19.69 percent 
E)20.28 percent

Quizplus · Accepted Answer

The crossover rate is the IRR of the differences between two sets of cash flows.

Hungry Hoagie's Has Identified the Following Two Mutually Exclusive Projects