Respuesta :
Crossover rate is the rate of return of two equivalent projects that have similar net present value.
As companies have restricted resources, they have to choose the method to utilize these restricted resources on different projects. Measuring the crossover rate helps organizations to select which project to go after by collating their respective performance and analyzing the future profits against the risk factors.
A major point to keep remember in the calculation of the crossover point is the net present value, which is calculated using a net present value formula.The net present value in return is set by calculating the present value of the total costs and revenues of a project. The value is knocked off to modify the future cash flows.
To learn more about Crossover rate here
https://brainly.com/question/15572913
#SPJ4
