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Projects A and B are mutually exclusive and both have an initial cost of $78,000 each. Project A has annual cash flows for Years 1
Projects A and B are mutually exclusive and both have an initial cost of $78,000 each. Project A has annual cash flows for Years 1 to 3 of $28,300, $31,500, and $22,300, respectively. Project B has annual cash flows for Year 1 of $36,900 and $20,500 for Year 2 and $20,500 in year 3. At what required rate of return you will be indifferent between these two projects?
42.59 percent
16.33 percent
17.32 percent
17.17 percent
16.99 percent
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