Discussion
The crossover rate between two alternatives is the rate at which
Answer: B
Correct answer: their present worths are equal
The crossover or Fisher rate is the discount rate at which two alternatives are equally attractive, and it is the internal rate of return of the incremental cash flow between them. On either side of it the preference reverses, which is exactly why comparing internal rates alone can mislead.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development