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Totally Serial Enterprises is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below. Year ManBearPig Project Cash Flow

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Totally Serial Enterprises is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below. Year ManBearPig Project Cash Flow -$100,000 30,000 2 30,000 45,000 45,000 Flying Car Cash Flow -$200,000 55,000 55,000 75,000 90,000 At what interest rate do the two projects have the same NPV, i.e., what's the crossover rate between the two projects? A. 12.0% B. 8.6% C. 9.5% D. 10.0% E. 7.8%

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