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Project A and B have 4 year timelines. Project A has an initial investment of $100,000 and cash inflows of $60,000, $50,000 $40,000 and $40,000.
Project A and B have 4 year timelines. Project A has an initial investment of $100,000 and cash inflows of $60,000, $50,000 $40,000 and $40,000. Project B has an initial investment of $75,000 and cash inflows of $50,000, $40,000, $30,000 and $30,000. At what rate of interest would a company be indifferent at choosing project A or B?
A. 17.95%
B. 19.01% C. 21.86% D. 23.88% E. 24.44%
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