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FINDING THE INDIFFERENCE POINT Suppose a firm is considering the following two mutually exclusive projects (they can only pick one) and has a 4% cost
FINDING THE INDIFFERENCE POINT Suppose a firm is considering the following two mutually exclusive projects (they can only pick one) and has a 4% cost of capital. The investments have the cash flows detailed below. Calculate the cash flow difference and solve for the indderence point. Discount rate Year Cash Flow Difference 0 1 Project A -$25.00 $8.00 $10.00 $15.00 Project B $20.00 $10.00 $10.00 $6.00 2 3 Indifference Point
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