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# HW2 - Question 1(1 point You are comparing two mutually...

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Question 1: (1 point) You are comparing two mutually exclusive projects. The crossover point is 11.46 percent. You determine that you should accept project B if the required return is 9.8 percent. This implies you should: Question 2: (1 point) Graphing the crossover point helps explain: Question 3: (1 point) Which of the following are elements of the internal rate of return method of analysis? I. the timing of the cash flows II. the cutoff point after which any future cash flows are ignored III. the rate designated as the minimum acceptable rate of return for a project IV. the amount of each cash flow

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Question 4: (1 point) Calculating AAR You're trying to determine whether to expand your business by building a ne installation cost of \$14 million, which will be depreciated straight-line to z projected net income of \$1,276,000, \$1,237,000, \$1,281,000, and \$1,20 average accounting return (AAR) is percent. (Do not include the perce decimal places, e.g. 32.16.) Question 5: (1 point)
NPV versus IRR Bumble's Bees, Inc., has identified the followin Year Cash Flow (A) 0 –\$ 41,000 1

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