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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 | Project A | Project B | ||||
0 | $30,000 | $30,000 | ||||
1 | 11,500 | 19,630 | ||||
2 | 11,500 | 9,500 | ||||
3 | 19,500 | 11,650 | ||||
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19.28%; A
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11.33%; B
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11.33%; A
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17.76%; B
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17.76%; A
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