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Crenshaw Enterprises has gathered projected cash flows for two projects. Year Project I Project J 0 $ 197,000 $ 197,000 1 95,500 72,600 2 87,600
Crenshaw Enterprises has gathered projected cash flows for two projects.
Year | Project I | Project J |
---|---|---|
0 | $ 197,000 | $ 197,000 |
1 | 95,500 | 72,600 |
2 | 87,600 | 77,800 |
3 | 65,200 | 81,400 |
4 | 59,800 | 87,000 |
At what interest rate would the company be indifferent between the two projects?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Which project is better if the required return is above this interest rate?
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