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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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