The firm is comparing two mutually exclusive projects. The crossover point is 15%. The firm has determined that it should accept project A if the required rate of return is 11%. Therefore, the firm should:

1. always accept project A.
2. accept project B if the required rate of return is 16%.
3. accept project B if the required rate of return is 10%.
4. accept project B if the required rate of return is 12%