crossover rate
Definition
The specific return required by each project in order for two projects to have the same Net Present Value.
Use crossover rate in a sentence
“ I wanted to know the crossover rate, but no one would tell me, so I had to find out myself. ”
“ They were thinking about investing in two different projects. But in order for the one project to work, the crossover rate would have been ten percent. ”
“ As he studied the crossover rate, he realized that he needed to have a rate of six-percent and ten-percent and he wasn't sure it that was feasible in the current market. ”
