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HH Companies has identified two mutually exclusive projects. Project A has cash flows of $40,000, $21,200, $26,800, and $7,500 for Years 1 to 3, respectively.

HH Companies has identified two mutually exclusive projects. Project A has cash flows of $40,000, $21,200, $26,800, and $7,500 for Years 1 to 3, respectively. Project B has a cost of $38,000 and annual cash inflows of $25,500 for 2 years and no cash flow for Year 3. What is the crossover rate?

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