You are considering the following two mutually exclusive projects.The crossover point is _____ and Project _____ should be accepted at a 12 percent discount rate.
A)11.07 percent; B
B)11.38 percent; A
C)11.38 percent; B
D)14.02 percent; A
E)14.02 percent; B

Question

You are considering the following two mutually exclusive projects.The crossover point is _____ and Project _____ should be accepted at a 12 percent discount rate. 
A)11.07 percent; B 
B)11.38 percent; A 
C)11.38 percent; B 
D)14.02 percent; A 
E)14.02 percent; B

Quizplus · Accepted Answer

The crossover point is 14.02 percent. At 12 percent, Project A has the higher net present value and should be accepted.

You Are Considering the Following Two Mutually Exclusive Projects