- You Have Been Hired As Consultants For Bigco Manufacturing Company Bigco Is Considering Several Projects And Has Provid 1 (22.01 KiB) Viewed 59 times
You have been hired as consultants for Bigco Manufacturing
Company. BigCo is considering several projects and has provided the forecasted annual after-tax cash flows in Table 1. Table 1 Annual Cash Flows (All Amounts in $Million) Project B Project C Project D Project E Project A Project F Project G Year o - 1.200 -2,400 -8,500 -5.100 -5,300 -11,000 -3,200 Year 1 500 1,500 2,000 4.800 2,500 3,000 1,500 Year 2 1,000 1,200 2,000 1,000 3,000 2.000 1,200 Year 3 1,200 300 8,000 6.000 5,000 1,000 500 Year 4 2,500 500 2,000 -3,000 1,000 2.000 Year 5 3,000 200 2.500 -4,000 3,000 3,000 Calculate the crossover rate for projects B and Cfrom Table 1. (Round answer to 2 decimal places, e.g. 25.25%.) Crossover rate %