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 less than the crossover rate.
| Year | Project A | Project B | ||||
| 0 | $35,000 | $35,000 | ||||
| 1 | 21,500 | 13,680 | ||||
| 2 | 13,500 | 11,500 | ||||
| 3 | 13,500 | 25,200 | ||||
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18.30%; B
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10.20%; A
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10.20%; B
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20.21%; A
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20.21%; A
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