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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 Flying Car Cash Flow 0 -$100,000 -$200,000 1 30,000 55,000 2 30,000 55,000 45,000 75,000 4 45,000 90,000 3 At what interest rate do the two projects have the same NPV, i.e., what's the crossover rate between the two projects? A. 9.5% B. 12.0% C. 10.0% D. 7.8% E. 8.6%

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