John’s Gyms is choosing between two new offerings, a Playhouse and a Fort - The Playhouse line will cost $30,000 to set up and generate cash flows of $15,000 and $20,000 over two years. - The Fort project will cost $80,000 to set up but is expected to yield cash flows of $39,000 and $52,000. What is the cross-over rate for the Fort and Playhouse projects?

John’s Gyms is choosing between two new offerings, a Playhouse and a Fort - The Playhouse line will cost $30,000 to set up and generate cash flows of $15,000 and $20,000 over two years. - The Fort project will cost $80,000 to set up but is expected to yield cash flows of $39,000 and $52,000. What is the cross-over rate for the Fort and Playhouse projects?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6PA: There are two projects under consideration by the Rainbow factory. Each of the projects will require...

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