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

0 -$100,000 1. 40,000 2. 45,000 3. 50,000 4. 55,000

Flying Car Cash Flow

0 -165,000 1. 55,000 2. 60,000 3. 75,000 4. 90,000

At what interest rate do the two projects have the same NPV, i.e., what's the crossover rate between the two projects?

A. 13.1% B. 8.6% C. 7.8% D. 9.5% E. 12.2%