Question
Need answered within the hour. FED Lean has identified two mutually exclusive projects with the following cash flows. Year 0 1 2 3 4 5
Need answered within the hour.
FED Lean has identified two mutually exclusive projects with the following cash flows.
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash Flow Project A | -52,000.00 | 19,000.00 | 16,000.00 | 14,000.00 | 12,000.00 | 9,000.00 |
| Cash Flow Project B | -52,000.00 | 8,000.00 | 12,000.00 | 16,000.00 | 22,000.00 | 20,000.00 |
The company requires a 12% rate of return from projects of this risk.
At what discount rate would you be indifferent between these two projects?
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Financial Management For Public Health And Not For Profit Organizations
Authors: Steven A. Finkler
2nd Edition
0131471988, 978-0131471986
