Question: Anderson Associates is considering two mutually exclusive projects that have the following cash flows: Project AProject B Year Cash Flow Cash Flow 0-$10,000-$8,000 14,0007,000 22,0003,000

Anderson Associates is considering two mutually exclusive projects that have the following cash flows:

Project AProject B

YearCash FlowCash Flow

0-$10,000-$8,000

14,0007,000

22,0003,000

36,0001,000

48,0003,000

At what cost of capital do the two projects have the same net present value? (That is, what is the crossover rate?)Enter your answer rounded to two decimal places.

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