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Hodgkiss Enterprises has gathered projected cash flows for two projects. Year Project 1 -$264,000 113,600 105,800 89,800 78,800 Project J -$264,000 93,400 100,400 102,400 109,400
Hodgkiss Enterprises has gathered projected cash flows for two projects. Year Project 1 -$264,000 113,600 105,800 89,800 78,800 Project J -$264,000 93,400 100,400 102,400 109,400 At what interest rate would the company be indifferent between the two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Interest rate % Which project is better if the required return is above this interest rate? (Click to select)
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