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		$42,000			$42,000
1		21,500			13,750
2		13,500			11,500
3		13,500			25,900

Multiple Choice

• 9.35%; B

• 14.24%; A

• 14.24%; B

• 8.29%; A

• 8.29%; A