Question: Totally Serial Enterprises is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below. Year ManBearPig Project Cash Flow

Totally Serial Enterprises is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below.

Year

ManBearPig Project Cash Flow

Flying Car Cash Flow

0

-$100,000

-$200,000

1

25,000

50,000

2

25,000

50,000

3

50,000

80,000

4

50,000

100,000

At what rate will the company be indifferent between the two projects, i.e. whats the crossover rate?

Group of answer choices

15.9%

12.7%

13.0%

10.0%

14.6%

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