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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