Crossover rate

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Crossover rate is the cost of capital at which the NPV profiles for two projects intersect.

Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Crossover rate. The cost of capital at which the NPV profiles for two projects intersect.

Related concepts

Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.

Related lectures

Introduction to Financial Management.

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