Question: You are considering the following two mutually exclusive projects. The crossover rate between these two projects is ___ percent and Project ___ should be accepted

You are considering the following two mutually exclusive projects. The crossover rate between these two projects is ___ percent and Project ___ should be accepted if the required return is greater than the crossover rate.

Year Project A Project B
0 $ 21,000 $ 21,000
1 7,000 15,040
2 7,000 5,000
3 15,000 7,060

Multiple Choice

16.70; A

12.59; B

12.59; A

15.61; B

15.61; A

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