You are comparing two mutually exclusive projects. Both projects have an initial cost of $40,500 . Project A has cash inflows of $21,500 , $18,500 , and $15,500 over the next 3 years, respectively. Project B has cash inflows of $10,500 , $12,700 and $36,500 over the next 3 years. What is the crossover rate for Projects A and B?

multiple choice:

15.77, 16.03,14.30, 15.01

A bond that pays interest annually yields a rate of return of 9.75 percent. The inflation rate for the same period is 2 percent. What is the real rate of return on this bond?

multiple choice: 4.88, 2.00,1.08, 7.60, 11.75