You are considering the following two mutually exclusive projects.The crossover point is _____ and Project _____ should be accepted if the discount rate is 14 percent.
A)12.79 percent; B
B)13.28 percent; A
C)13.28 percent; B
D)15.96 percent; A
E)15.96 percent; B

Question

You are considering the following two mutually exclusive projects.The crossover point is _____ and Project _____ should be accepted if the discount rate is 14 percent. 
A)12.79 percent; B 
B)13.28 percent; A 
C)13.28 percent; B 
D)15.96 percent; A 
E)15.96 percent; B

Quizplus · Accepted Answer

The crossover point is 13.28 percent. Project B should be accepted at 14 percent because it has the higher net present value.

You Are Considering the Following Two Mutually Exclusive Projects