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You are considering the following two mutually exclusive projects. The crossover rate between these two projects is ___ percent and Project ___ should be accepted

You are considering the following two mutually exclusive projects. The crossover rate between these two projects is ___ percent and Project ___ should be accepted if the required return is less than the crossover rate.

Year Project A Project B
0 $35,000 $35,000
1 21,500 13,680
2 13,500 11,500
3 13,500 25,200

  • 18.30%; B

  • 10.20%; A

  • 10.20%; B

  • 20.21%; A

  • 20.21%; A

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