The interest rate that makes Alternatives A and B equivalent is in what range?
Year / Alt A. / Alt. B
0 / -$1,000 / -$3,000
1 / 100 / 500
2 / 100 / 550
3 / 100 / 600
4 / 200 / 650
5 / 200 / 650
a) Less than 2%
b) Between 2% and 5%
c) Greater than 5%
d) There is no interest rate that equates these two cash flow series.