J. Marcel Enterprises has gathered projected cash flows for two projects. At what interest rate would the

Question:

J. Marcel Enterprises has gathered projected cash flows for two projects. At what interest rate would the company be indifferent between the two projects? Which project is better if the required return is above this interest rate? Why? Project M Year Project N -$145,000 -$350,000 63,000 155,000 2 81,000 175,000 72,000 140,000 105,000 4 58,000