Kim Lee Is Analyzing Two Projects

Multiple Choice

Kim Lee is analyzing two projects. The first requires a $1,200 initial investment and returns $600 a year for four years. The second project requires a $1,500 initial investment and returns $700 a year for four years. What is the crossover point for these two projects?

A) 4.25%
B) 6.37%
C) 8.14%
D) 12.59%
E) The crossover point cannot be computed based on the information provided.