Question: The cash flows for two mutually exclusive investment projects A and B are listed below. What is the crossover rate for these two projects? Project

The cash flows for two mutually exclusive investment projects A and B are listed below. What is the crossover rate for these two projects?

Project

Year 0

Year 1

Year 2

Year 3

A

$200

$100

$100

$100

B

$320

$180

$130

$130
a) 10.0%
b) 11.2%
c) 11.7%
d) 12.3%
e) 13.1%

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