Project a Has Cash Flows of −$50,000, $49,400, $27,200, and $24,500

Multiple Choice

Project A has cash flows of −$50,000, $49,400, $27,200, and $24,500 for Years 0 to 3, respectively. Project B has an initial cost of $50,000 and an annual cash inflow of $18,500 for four years. These are mutually exclusive projects. What is the crossover rate?

A) 30.89 percent
B) 16.08 percent
C) −30.89 percent
D) Cannot be computed
E) −16.08 percent