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 greater than the crossover rate.

Year Project A Project B

0 $ 21,000 $ 21,000

1. 7,000 15,040

2 7,000 5,000

3 15,000 7,060

Multiple Choice

15.61; B

16.70; A

15.61; A

12.59; B

12.59; A