Question: What is the crossover rate? Project A Project B Year Cash Flow Cash Flow 0 -$75,000 -$25,000 1 $30,000 $12,000 2 $30,000 $13,000 3 $40,000

What is the crossover rate?

Project A Project B

Year Cash Flow Cash Flow

0 -$75,000 -$25,000

1 $30,000 $12,000

2 $30,000 $13,000

3 $40,000 $13,000

a.

23.87%
b.

8.06%
c.

10.74%
d.

15.24%

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