Question: You are comparing tow mutually exclusive projects with the following cash flows: Y 0 A = - 7 0 0 0 B = - 6

You are comparing tow mutually exclusive projects with the following cash flows: Y0 A=-7000 B=-6000, Y1 A=3500 B=6000, Y2 A=5000 B=5300, Y3 A=6000 B=1500. The required return is 8 percent. What is the crossover rate (i.e., at what discount rate do the two NPV profiles cross)?3.81%,5.89%,9.75%,8.00% or 8.99%

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