Question: Pera Inc.,a shipment firm, is considering two mutually exclusive projects. The projects have the following cash flows: Project A Project B Year Cash Flow Cash

Pera Inc.,a shipment firm, is considering two mutually exclusive projects. The

Pera Inc.,a shipment firm, is considering two mutually exclusive projects. The projects have the following cash flows: Project A Project B Year Cash Flow Cash Flow 0 -$10,000 1 1,000 2,000 -$2,000 1,000 1,000 2 3 6,000 6,000 1,000 1,000 4 What is the crossover rate? 12% 14% 12.5% 10%

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