In: Finance
Please add the explanation.
6.You are evaluating two mutually exclusive projects, A and B. Project A costs $350 and has cash flows of $250 in each of the next 2 years. Project B costs $300 and generates cash flows of $300 and $100 for the next 2 years, respectively. What is the crossover rate for these projects?
A) 26.38%
B) 27.47%
C) 30.28%
D) 61.80%
E) 83.48%