Question: You are considering the following two mutually exclusive projects. Project A requires an initial investment of 33,000 and is expected to generate the following cashflows

You are considering the following two mutually exclusive projects. Project A requires an initial investment of 33,000 and is expected to generate the following cashflows over next three years respectively: 21,000, 13,000, and 13,000. Project B requires an initial investment of 33,000 and is expected to generate the following cashflows over next three years respectively: 13,160, 11,000, and 24,500. The crossover rate between these two projects is ___ percent and Project ___ should be accepted if the required return is greater than the crossover rate.

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