Question: (Crossing) In general, we say that two projects with cash flows \(x_{i}\) and \(y_{i}, i=0,1,2, \ldots\), \(n\), cross if \(x_{0}\sum_{i=0}^{n} y_{i}\). Let \(P_{x}(d)\) and \(P_{y}(d)\) denote the present values of these two projects when the discount factor is \(d\).

1. Show that there is a crossover value \(c>0\) such that \(P_{x}(c)=P_{y}(c)\)
2. For Exercise 11, calculate the crossover value \(c\).

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