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5. You are analyzing the following two mutually exclusive projects and have developed the following information. What is the crossover rate? Project A Project B

5. You are analyzing the following two mutually exclusive projects and have developed the following information. What is the crossover rate?

Project A Project B
YEAR Cash Flow Cash Flow
0 $-75,000 $-75,000
1 $24,800 $22,000
2 $29,500 $27,500
3 $43,500 $51,300

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