You are considering the following two mutually exclusive projects. The crossover rate between these two projects is ___ percent and Project ___ should be accepted if the required return is greater than the crossover rate.

Year Project A Project B
0 −$29,000 −$29,000
1 11,000 19,120
2 11,000 9,000
3 19,000 11,140

Multiple Choice
a. 9.35%; B
b. 14.24%; A
c. 14.24%; B
d. 8.29%; A
e. 8.29%; A

The advantage of administering personality tests on employees is that it will allow the employer to know the mindset and personality of the employee. this will allow the employer to at least have an idea as to how the employee works and how his attitude in the workplace. the disadvantage is that it may make the employee a little anxious as to whether he would meet the personality requirements of the employer and whether he would be able to retain the job or not. 

The correct answer is step.