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Projects A and B are mutually exclusive; each initial cost is $1,800 and $2,000, respectively. Suppose that the required rate of return is 5%.

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Projects A and B are mutually exclusive; each initial cost is $1,800 and $2,000, respectively. Suppose that the required rate of return is 5%. Year 0 1 2 3 4 What is the crossover rate? 6.84% 7.25% 6.25% 5.26% Project A -1800 Project B -2000 250 610 200 610 850 610 1000 610

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