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Given the following cash flows for project a and project b Year 0 1 2 3 4 Project A -15000 4000 2000 7000 5000 Project

Given the following cash flows for project a and project b

Year 0 1 2 3 4

Project A -15000 4000 2000 7000 5000

Project B -17000 5000 2000 7000 6250

Which of the following statement is correct?

The crossover rate of two projects is 4.6%

The crossover rate of two projects is 7.0%

The crossover rate of two projects is the mean of the IRRs of the two projects

The crossover rate of two projects is 6.8%

The crossover rate of two projects is higher than the IRR of the project with the lowest IRR of both projects.

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