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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 greater than the crossover rate.
Year 0 1 2 3
Project A $38,000 21,500 13,500 13,500
Project B $38,000 13,710 11,500 25,500
Group of answer choices
14.62%; A
14.62%; B
11.94%; B
11.94%; A
14.12%; B
I know the crossover rate is 11.94,my main question is asking how to pick a project once I know this. Should I pick A or B
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