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(2 points) You have a choice between two mutually exclusive investments. If you require a 14% return, at what rate of return would you be

(2 points) You have a choice between two mutually exclusive investments. If you require a 14% return, at what rate of return would you be indifferent between the two investments?

A

B

Year

Cash Flow

Cash Flow

0

-$150,000

-$120,000

1

50,000

72,000

2

90,000

50,000

3

70,000

40,000

A) 14.00%

B) 15.98%

C) 17.85%

D) 18.74%

E) None of the above

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