Morbius or Blade?

Year	Film A			Film B
0		$21,000			$21,000
1		7,000			15,040
2		7,000			5,000
3		15,000			7,060

Marvel Studios must choose between two film projects. Film A is a new Morbius movie and Film B is a new Blade movie. Based on the cash flows associated with each film (given in the above table), the crossover rate between the Morbius and Blade films is ___ percent and Film ___ should be accepted if the required return is greater than the crossover rate.

rev: 05_02_2019_QC_CS-167236, 09_25_2019_QC_CS-182411, 09_27_2019_QC_CS-182208

Multiple Choice

• 12.59%; B

• 15.61%; A

• 15.61%; B

• 16.70%; A

• 12.59%; A