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How do you get an answer of 10.7%???? 15) With the following pattern of cash flows between project A and B, what is the discount
How do you get an answer of 10.7%????
15) With the following pattern of cash flows between project A and B, what is the discount rate that makes the NPV of both projects indifferent Project A Project B Initial investment $ 42,000) $(45,000) Cashflow in vear 1 $14,000 $28,000 Cash flow in year 2 $14,000 $12,000 Cash flow in year 3 $14,000 $10,000 Cash flow in year 4 $14,000 $10,000 Cash flow in year 5 $14,000 $10,000 10.7%Step by Step Solution
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