Question
Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$28,700 -$28,700 1 $14,100 $4,150 2 $12,000
Bruin, Inc., has identified the following two mutually exclusive projects:
| Year | Cash Flow (A) | Cash Flow (B) |
| 0 | -$28,700 | -$28,700 |
| 1 | $14,100 | $4,150 |
| 2 | $12,000 | $9,650 |
| 3 | $9,050 | $14,900 |
| 4 | $4,950 | $16,500 |
At what discount rate would the company be indifferent between these two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Discount rate:
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Applications In Energy Finance
Authors: Christos Floros, Ioannis Chatziantoniou
1st Edition
3030929566, 978-3030929565
