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Handy Enterprises has gathered projected cash flows for two projects. Year Project I Project J 0 $264,000 $264,000 1 113,600 93,400 2 105,800 100,400 3
Handy Enterprises has gathered projected cash flows for two projects.
Year | Project I | Project J | ||||||
0 | $264,000 | $264,000 | ||||||
1 | 113,600 | 93,400 | ||||||
2 | 105,800 | 100,400 | ||||||
3 | 89,800 | 102,400 | ||||||
4 | 78,800 | 109,400 | ||||||
At what interest rate would the company be indifferent between the two projects?
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