What is the crossover rate

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Reference no: EM131451356

1. Cummings Products Company is considering two mutually exclusive investments whose expected net cash flows are as follows:

year Project A Project B

0 ($631.00) ($475.00)

1 300 290

2 310 290

3 320 290

4 330 290

5 340 290

6 350 290

7 360 290

8 370 290

e. What is the crossover rate?

a)16.93%

b)16.08%

c)18.96%

d)18.12%

e)17.10%

Reference no: EM131451356

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