Question
Q1. Flint Fruits is considering two equally risky, mutually exclusive projects, Projects A and B, that have the following cash flows: Year Project A Project
Q1. Flint Fruits is considering two equally risky, mutually exclusive projects, Projects A and B, that have the following cash flows:
| Year | Project A | Project B |
| 0 | - $100,000 | -$100,000 |
| 1 | 50,000 | 30,000 |
| 2 | 25,000 | 15,000 |
| 3 | 70,000 | 80,000 |
| 4 | 45,000 | 72,000 |
At which interest rate, are the NPVs of both projects same?
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Principles of managerial finance
Authors: Lawrence J Gitman, Chad J Zutter
12th edition
9780321524133, 132479540, 321524136, 978-0132479547
