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Consider the following two mutually exclusive projects: Cash Flow Cash Flow Year (X) (Y) 0 1 2 -$19,800 8,800 9,000 8,750 -$19,800 10,000 7,750 3

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Consider the following two mutually exclusive projects: Cash Flow Cash Flow Year (X) (Y) 0 1 2 -$19,800 8,800 9,000 8,750 -$19,800 10,000 7,750 3 8,650 At what discount rate are you indifferent of the two projects, that is net present value of the two projects will be the same? a. Any rate b. 8.92% c. 11.63% di 18.75% e. Never

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