The point at which the NPV of two projects becomes equal is known as?
وہ نقطہ جہاں دو منصوبوں کی خالص موجودہ قدر برابر ہو جائے، اسے کیا کہتے ہیں؟
- Break-even Point
- Fisher's Intersection
- Payback Point
- Accounting Rate Point
Explanation
- Crossover Rate (Fisher Separation Point)
- The discount rate at which the NPVs of two projects are equal.
- Calculation
- Derived from the IRR of the incremental cash flows between the two projects.
- Purpose
- Helps select between mutually exclusive projects when their NPV rankings conflict across different discount rates.
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