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%