MC algo 8-17 Calculating Crossover Rate

You are considering the following two mutually exclusive projects. The crossover rate between these two projects is ___ percent and Project ___ should be accepted if the required return is greater than the crossover rate.

Year	Project A			Project B
0		$36,000			$36,000
1		21,500			13,690
2		13,500			11,500
3		13,500			25,300

rev: 05_02_2019_QC_CS-167236, 05_09_2019_QC_CS-168369, 09_24_2019_QC_CS-182411

Multiple Choice

• 16.84%; B

• 10.78%; A

• 10.78%; B

• 18.25%; A

• 18.25%; B