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James,Inc. is considering the following mutually exclusive projects: Project A Project B Year Cash Flow Cash Flow 0 -$5,000 -$5,000 1 200 2,000 2 800
James,Inc. is considering the following mutually exclusive projects:
Project A | Project B | |
Year | Cash Flow | Cash Flow |
0 | -$5,000 | -$5,000 |
1 | 200 | 2,000 |
2 | 800 | 2,200 |
3 | 3,000 | 2,100 |
4 | 5,000 | 1,200 |
At what cost of capital will the net present value of the two projects be the same?
Select one:
a. 16.05%
b. 16.25%
c. 17.80%
d. 15.68%
e. 17.55%
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