Problem:
Consider the following two mutually exclusive projects:
Year Cash Flow (A) Cash Flow (B)
0 -$10,110 -$10,110
1 $5,373 $4,443
2 $3,373 $3,543
3 $4,473 $5,343
Required:
Question: What is the crossover rate for these two projects?
Note: Please provide step by step solution.