Question: Best Inc. is considering Projects S and L. These projects are mutually exclusive, equally risky, and not repeatable and their cash flows are shown below.

Best Inc. is considering Projects S and L. These projects are mutually exclusive, equally risky, and not repeatable and their cash flows are shown below. What is the cross-over rate?

r:	10.00%
Year	0	1	2	3	4
CF_S	$1,025	$650	$450	$250	$50
CF_L	$1,025	$100	$300	$500	$700

Group of answer choices

7.76%

8.18%

9.60%

10.55%

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