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Year A B 0 -8,000 -8,000 1 4,500 1,900 2 4,200 3,000 3 1,800 4,000 4 1,600 5,000 What is the cross-over rate of the

Year A B

0 -8,000 -8,000

1 4,500 1,900

2 4,200 3,000

3 1,800 4,000

4 1,600 5,000

What is the cross-over rate of the above two projects? Explain the significance of this rate.

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