CAPITAL BUDGETING. For this and the next question: Consider the following mutually exclusive projects. P and Q. Cost of capital is 10%, which of the two projects should be selected? Year P 0 $1,100-$1,100 800 200 400 100 1,000 2 3 Both projects 500 Project Q, because its NPV is $163.71 O Project because its IRR is 17.84% ONone of the projects should be chosen Calculate the projects' crossover rate and explain its significance Crossover rate-16.45%; it is the rate at which both projects have the same NPV 0 Crossover rate-17.84%; it is the rate above which there is a conflict in project choice Crossover rate-14.42%; it is the rate at which both projects have the same NPV None of the above statements is correct