Question: ZZY, LLC, has identified the following two mutually exclusive projects: Year Cash Flow for A in $ Cash Flow for B in $ 0 -65,000

ZZY, LLC, has identified the following two mutually exclusive projects:

Year Cash Flow for A in $ Cash Flow for B in $
0 -65,000 -65,000
1 34,000 19,000
2 27,000 25,000
3 21,000 29,000
4 17,000 34,000

Below what discount rate is B the better project than A? (Hint: You need to find the crossover rate).

Answer in percent to two decimals.

Option A: 16.31
Option B: 21.01
Option C: 22.23

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