Project X has a five-year life and an initial cost of $40,000 and annual cash flows of $12,500 per year. Project Y also has a five-year life and an initial cost of $50,000 with annual cash flows of $15,500 per year. The projects are mutually exclusive. What is the NPV at cross-over point?

Multiple Choice

$1,333.33

$1,666.67

$1,833.33

$2,135.50

$2,256.67