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I am considering two mutually exclusive projects, each with a cost of $600 and a 3-year life (straight-line depreciation). Project A provides cash flows of
I am considering two mutually exclusive projects, each with a cost of $600 and a 3-year life (straight-line depreciation). Project A provides cash flows of $300 per year for 3 years, while project B provides cash flows of $150, $300 and $600 in years 1, 2 and 3, respectively. Assume the discount rate is 10% and my tax rate 20%. At discount rate would be indifferent between the two projects? Please don't show answers in Excel
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