Rob or Bob?

Year	Movie A			Movie B
0		$31,000			$31,000
1		12,000			20,140
2		12,000			10,000
3		20,000			12,160

ActorsFilms must choose between two movie projects. Movie A is has actor Rob and Moviee B has actor Bob. Based on the cash flows associated with each movie (given in the above table), the crossover rate between the Rob and Bob movies is ___ percent and movie ___ should be accepted if the required return is greater than the crossover rate.

(select one)

• 17.93%; A

• 11.19%; B

• 11.19%; A

• 17.93%; B

• 19.46%; A