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 | -$36,000 | -$36,000 | ||||
| 1 | 21,500 | 13,690 | ||||
| 2 | 13,500 | 11,500 | ||||
| 3 | 13,500 | 25,300 | ||||
A. 10.78%; A
B. 18.25%; A
C. 10.78%; B
D. 18.25%; B
E. 16.84%; B
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