Question: Projects A and B are mutually exclusive and both have an initial cost of $88,000. Project A has annual cash flows for three years of

Projects A and B are mutually exclusive and both have an initial cost of $88,000. Project A has annual cash flows for three years of $18,300, $34,500, and $52,300, respectively. Project B has annual cash flows for three years of $26,400, $30,900, and $43,700. What is the crossover rate?

Select one:

27.63 percent

25.30 percent

18.32 percent

13.33 percent

9.74 percent

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