Question: Consider two mutually exclusive projects, A and B, whose costs and cash flows are shown in the following table: Year Project A Project B 1

Consider two mutually exclusive projects, A and B, whose costs and cash flows are shown in the following table:

Year Project A Project B

1 $(15,000) $(22,840)

2 8,000 8,000

3 7,000 8,000

4 2,500 8,000

5 3,000 8,000

Calculate the cross over rate.

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