Problem 8-18 Crossover Point [LO 3]

Crenshaw Enterprises has gathered projected cash flows for two projects.

Year	Project I	Project J
0	-259,000	-259,000
1	114,100	90,400
2	104,800	99,900
3	88,800	101,900
4	77,800	108,900

\a. At what interest rate would the company be indifferent between the two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

b. Which project is better if the required return is above this interest rate?

Please solve WITHOUT excel. I cannot use excel on my exam.