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Best Inc. is considering Projects S and L. These projects are mutually exclusive, equally risky, and...

Best Inc. is considering Projects S and L. These projects are mutually exclusive, equally risky, and not repeatable and their cash flows are shown below. What is the cross-over rate?

r:

10.00%

Year

0

1

2

3

4

CFS

−$1,025

$650

$450

$250

  $50

CFL

−$1,025

$100

$300

$500

$700

Group of answer choices

7.76%

8.18%

9.60%

10.55%

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