Question
Hodgkiss Enterprises has gathered projected cash flows for two projects. Year Project I Project J 0 -269,000 -269,000 1 113,100 96,400 2 106,800 100,900 3
Hodgkiss Enterprises has gathered projected cash flows for two projects.
| Year | Project I | Project J | ||
| 0 | -269,000 | -269,000 | ||
| 1 | 113,100 | 96,400 | ||
| 2 | 106,800 | 100,900 | ||
| 3 | 90,800 | 102,900 | ||
| 4 | 79,800 | 109,900 | ||
At what interest rate would the company be indifferent between the two projects?
Which project is better if the required return is above this interest rate?
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The House That Bogle Built How John Bogle And Vanguard Reinvented The Mutual Fund Industry
Authors: Lewis Braham
1st Edition
0071749063,0071751157
