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A company is considering two separate mutually exclusive projects A and B . Project A requires an initial investment of $ 7 5 , 0

A company is considering two separate mutually exclusive projects A and B. Project A requires an initial investment of $75,000 and is expected to generate after-tax cash flows of $6,500 per year forever. Project B requires an initial investment of $100,000 and is expected to generate after-tax cash flows of $7,500 per year forever. At which cost of capital are you indifferent between the two projects assuming that the cost of capital for the industry is at 10%?
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