Sandoval Enterprises has gathered projected cash flows for two projects. At what interest rate would Sandoval be indifferent between the two projects? Which project is better if the required rate of return is above this interest rate? Why?
The question is number 4 located in EMBA711 - Chpt 10 - Capital Budgeting - classnotes
Think the cross over rate is 16.75% and you would choose project A because it has a higher IRR. But it might be project B since it has a higher NPV when the interest rate is 0%