You are comparing two mutually exclusive projects with the following cash flows:

Project A Project B

Y0 -7,000 -6,000

Y1 3,500 6,000

Y2 5,000 5,300

Y3 6,000 1,500

The required return is 8 percent. What is the crossover rate (i.e., at what discount rate do the two NPV profiles cross)?

Group of answer choices

8.00%

9.75%

5.89%

8.99%

3.81%