You are considering the following two mutually exclusive projects. The crossover rate between these two projects is ___ percent and Project ___ should be accepted based on the NPV Rule if the required return is greaterthan the crossover rate.

Year Project A Project B 0 $ 37,000 $ 37,000 1 21,500 13,700 2 13,500 11,500 3 13,500 25,400 16.39; B

11.36; A

15.45; B

11.36; B

16.39; A

Cirice Corporation is considering opening a branch in another state. The operating cash flow will be $187,600 a year. The project will require new equipment costing $580,000 that would be depreciated on a straight-line basis to zero over the 5-year life of the project. The equipment will have a market value of$169,000 at the end of the project. The project requires an initial investment of $39,000 in net working capital, which will be recovered at the end of the project. The tax rate is 21 percent. What is the project's IRR?

20.76% 21.84% 19.04% 16.93% 22.14%