Question: Flint Fruits is considering two equally risky, mutually exclusive projects, Projects A and B, that have the following cash flows: Year 0 1 2. 3

 Flint Fruits is considering two equally risky, mutually exclusive projects, Projects

Flint Fruits is considering two equally risky, mutually exclusive projects, Projects A and B, that have the following cash flows: Year 0 1 2. 3 4 Project A -$100,000 40,000 25,000 70,000 40,000 Project B - $100,000 30,000 15,000 80,000 55,000 At what cost of capital discount rate) would the two projects have the same NPV? That is what is the crossover rate? OA) 12.55% B) 11.21% C) 14.49% D) 9.56% E) 10.33%

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