onsider the following cash flows for projects A and B.
Year Project A Project B
0 -$1000 -$1000
1 375 900
2 375 700
3 375 500
4 375 -200
5 -100 200
The cost of capital for both projects is 10%. What is the cross over rate for projects A and B (the rate at which NPV profiles of the projects intersect each other)?