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2. I am considering two mutually exclusive 3-year projects. Project A requires an investment in equipment of $150,000 and will produce net income of $20,000

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2. I am considering two mutually exclusive 3-year projects. Project A requires an investment in equipment of $150,000 and will produce net income of $20,000 per year. Project B requires an investment in equipment of $120,000 and produces operating cash flows of $56,000 per year. The firm uses straight-line depreciation and depreciates all assets to zero. At what discount rate would I be indifferent between the two projects? 17.92% br101 19.46% d. 21.02% e. None of the above. Correct answer a. c

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