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1.A firm is considering the following mutually exclusive projects: Project A Project B Year Cash Flow Cash Flow 0 -$5,000 -$5,000 1 200 3,000 2
1.A firm is considering the following mutually exclusive projects:
Project A Project B
Year Cash Flow Cash Flow
0 -$5,000 -$5,000
1 200 3,000
2 800 3,000
3 3,000 800
4 5,000 200
At what cost of capital will the net present value of the two projects be the same? (That is, what is the
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