Question: You are evaluating two mutually exclusive projects, A and B. project A costs $600 and has cash flows of $400 in each of the next

You are evaluating two mutually exclusive projects, A and B. project A costs $600 and has cash flows of $400 in each of the next 2 years. Project B also costs $600, and generates cash flows of $500 and $275 for the next 2 years, respectively. What is the crossover rate?

a) 10%

b) 15%

c) 25%

d) 40%

e) 80%

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