At what cost of capital would the NPV profiles of these two projects intersect (i.e. the crossover rate)? Year 0 1 2 3 4 5 6 Project 1 ($30,000) $10,000 $30,000 $40,000 $40,000 $35,000 $60,000 Project 2 ($30,000) $20,000 $20,000 $20,000 $35,000 $30,000 $30,000

78.02%

The NPV profiles of these two projects do not intersect.

119.30%

70.71%