Question: Werqo Corp is considering two mutually exclusive projects, Projects A and B, and has determined that the crossover rate for these projects is 13.8 percent

Werqo Corp is considering two mutually exclusive projects, Projects A and B, and has determined that the crossover rate for these projects is 13.8 percent and the required return for both projects is 8.2 percent. You have determined that you should accept project A if the required return is 15.9 percent. Given this you know that:

Project A will have a higher NPV than Project B if the discount rate exceeds the crossover rate.

you are indifferent to the projects at any discount rate below 13.8 percent.

you are indifferent to the projects at any discount rate above 13.8 percent.

accept Project B only when the required return is equal to the crossover rate.

you are indifferent to the projects at any discount rate below 8.2 percent.

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