Projects A and B are mutually exclusive and have an initial cost of $78,000 each. Project A has annual cash flows for Years 1 to 3 of $28,300, $31,500, and $22,300, respectively. Project B has annual cash flows for Year 1 of $36,900 and $40,500 for Year 2. What is the crossover rate?
A) 17.17 percent
B) 16.33 percent
C) 17.32 percent
D) 16.99 percent
E) 15.20 percent

Question

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The Answer of Projects A and B are mutually exclusive and have an initial cost of $78,000 each. Project A has annual cash flows for Years 1 to 3 of $28,300, $31,500, and $22,300, respectively. Project B has annual cash flows for Year 1 of $36,900 and $40,500 for Year 2. What is the crossover rate?
A) 17.17 percent
B) 16.33 percent
C) 17.32 percent
D) 16.99 percent
E) 15.20 percent

Projects a and B Are Mutually Exclusive and Have an Initial