Question
There are two mutually exclusive projects with the following cash flows. What is the crossover rate? Year Cash Flow A Cash Flow B 0 -$85,000
There are two mutually exclusive projects with the following cash flows. What is the crossover rate?
| Year | Cash Flow A | Cash Flow B |
| 0 | -$85,000 | -$85,000 |
| 1 | 31,000 | 57,500 |
| 2 | 37,000 | 20,000 |
| 3 | 44,000 | 32,000 |
| 4 | 75,000 | 72,000 |
Group of answer choices
8.22 percent
10.44 percent
8.55 percent
13.06 percent
16.13 percent
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