Question
Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash flow (A) Cash flow (B) 0 ps 29.200 ps 29.200 1 14.600 4.400
Bruin, Inc., has identified the following two mutually exclusive projects:
| Year | Cash flow (A) | Cash flow (B) | |||||
| 0 | ps | 29.200 | ps | 29.200 | |||
| 1 | 14.600 | 4.400 | |||||
| 2 | 12.500 | 9,900 | |||||
| 3 | 9.300 | 15.400 | |||||
| 4 | 5.200 | 17.000 | |||||
At what discount rate would the company be indifferent between these two projects? Show the work.
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Fundamentals of Corporate Finance
Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan
12th edition
007353062X, 73530628, 1260153592, 1260153590, 978-1260153590
