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PLEASE SHOW HOW YOU ARRIVED AT ANSWER. THANK YOU You are analyzing the following two mutually exclusive projects: Project X Project Y Year Cash Flow

PLEASE SHOW HOW YOU ARRIVED AT ANSWER. THANK YOU

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You are analyzing the following two mutually exclusive projects: Project X Project Y Year Cash Flow Cash Flow 0 -$5,000 $5,000 1 200 3,000 2 800 3,000 3 3,000 800 4 5,000 200 At what cost of capital will the net present value of the two projects be the same? (That is, what is the "crossover" rate?)

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