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Consider the following two mutually exclusive projects: Years Cash flow (A) Cash flow (B) 0 -$10,110 -$10,110 1 $ 5,200 $ 4,300 2 $3,373 $3,543

Consider the following two mutually exclusive projects:

Years Cash flow (A) Cash flow (B)

0 -$10,110 -$10,110

1 $ 5,200 $ 4,300

2 $3,373 $3,543

3 $4,473 $5,343

What is the crossover rate for these two projects?

a.

8.22 percent
b.

8.48 percent
c.

8.71 percent
d.

8.75 percent

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