ABC Inc. is considering two mutually exclusive investment projects, each of which requires an up-front expenditure of $2,440,000.00. You estimate that the investments will produce the following net cash flows: Year Project A Project B 1 $4,780,000 $21,370,000 2 11,230,000 11,160,000 3 20,270,000 6,040,000 Which project should ABC Inc. choose , assuming the cost of capital is 16.50%?

Group of answer choices

Choose Project A becasue NPVA > NPVB by $3,943,705.63.

Choose Project A becasue NPVA > NPVB by $5,656,104.12.

Choose Project B becasue NPVB > NPVA by $5,189,086.35.

Choose Project B becasue NPVB > NPVA by $4,099,378.22.

Choose Project A becasue NPVA > NPVB by $6,486,357.94.

Humboldt Products Company is considering two mutually exclusive investments whose expected net cash flows are as follows:

Year	Project A	Project B
0	($688.00)	($441.00)
1	300	290
2	310	290
3	320	290
4	330	290
5	340	290
6	350	290
7	360	290
8	370	290

e. What is the crossover rate?

Group of answer choices

6.84%

5.57%

7.40%

7.05%

7.47%