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A company plans to undertake an expansion project and is evaluating two proposals, A and B. Proposal A Proposal B Year 0 -$150,000 -$150,000 Year

A company plans to undertake an expansion project and is evaluating two proposals, A and B. Proposal A Proposal B Year 0 -$150,000 -$150,000 Year 1 $50,000 $60,000 Year 2 $50,000 $55,000 Year 3 $50,000 $50,000 Year 4 $50,000 $40,000 Year 5 $50,000 $35,000 Since the previous answer gave results, what is the cross-over rate? 16.20% 16.66% 17.20% 16.94%

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