Question: Johnsons Inc. is considering the following mutually exclusive projects: Project Project A B Year Cash Cash Flow Flow 35,00035,000 1 800 3,000 2 900 3,000

Johnsons Inc. is considering the following mutually exclusive projects: Project Project

Johnsons Inc. is considering the following mutually exclusive projects: Project Project A B Year Cash Cash Flow Flow 35,00035,000 1 800 3,000 2 900 3,000 3 2,000 800 4 5,000 600 At what cost of capital will the net present value of the two projects be the same? (That is, what is the "crossover" rate?) Round it to one decimal place, e.g. 10.5

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