P9-12 NPV versus IRR [LO1,5]

Mahjong, Inc., has identified the following two mutually exclusive projects:

Year

Cash Flow (A)

Cash Flow (B)

0

$38,000

$38,000

1

19,100

5,900

2

14,600

12,400

3

12,100

18,900

4

9,100

22,900

(e)	At what discount rate would the company be indifferent between these two projects?
	(Click to select)12.84%11.86%11.62%12.23%12.6%