1. Project S has an initial cost of $10,000 and produces annual cash flows of $3,000 for five years. Project L has an initial cost of $25,000 and generates annual cash flows of $7,000 for five years. The two projects are mutually exclusive. What is the cross-over rate for these two projects?

   	a.	16.25%
   	b.	15.25%
   	c.	14.25%
   	d.	10.42%
   	e.	The crossover rate does not exist for these two projects