Question: C. Following cash flows are given for two mutually exclusive projects. Calculate the cross-over rate between these two projects. Assume any percentage (any number higher

Following cash flows are given for two mutually exclusive projects. Calculate the cross-over rate between these two projects.

Assume any percentage (any number higher than cross over rate) as cost of capital for these projects. Give your decision to accept/reject project/s and explain your answer.

Year Project A Project B

0 -$4,500 -$4,500

1 1,300 2,500

2 1,000 2,000

3 3,500 1,000

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