George is interested in buying one of the two local businesses on sale: a Coffee Shop or a Shoe Store. The cashflows of both the businesses are shown below. George can borrow from a bank at a rate of 8.00% to buy Coffee Shop and 6.00% to buy Shoe Store Coffee Shop Shoe Store Year -$115,000 -$115,000 0 (Purchase Price) $7,1880 $51,750 1 $21,5621 $38,812 2 $40,250 $28,750 3 $50,315 $21,563 4 $57,500 $14,375 5 16) How much is the crossover rate of these projects? At crossover rate, both projects have the same NPV. Enter your answer in the following format: 0.1234; Hint: Answer is between 0.0897 and 0.1141 17) Which of the following are TRUE regarding the "Crossover Point" of two projects? A. At crossover point, the NPV of both projects will be equal B. At crossover point, the cashflows of both projects will be equal C. Crossover point of two projects is dependent on the cash flows of those projects D. Crossover point of two projects is not dependent on the cost of capital for those projects 18) Which of the following decision rules is INCORRECT regarding capital budgeting? A. If there is only one project to choose, invest if NPV >0, abandon if NPV