The Camel Company is considering two mutually exclusive projects with the following cash flows. The crossover rate is _______ and if the cost of capital (required rate) is higher than the crossover rate then project _______ should be accepted.

Year

0

1

2

3

CF_A

-$75,000

$30,000

$35,000

$35,000

CF_B

-$60,000

$25,000

$30,000

$25,000

A. 13.94%; A

B. 13.94%; B

C. 15.44%; A

D. 15.44%; B

E. 15.86%; A