Question
Your firm has gathered projected cash flows for two projects. At what discount rate will you be indifferent between the two projects? Year Project A
Your firm has gathered projected cash flows for two projects. At what discount rate will you be indifferent between the two projects?
| Year | Project A | Project B |
| 0 | -$45,000 | -$45,000 |
| 1 | 20,000 | 16,000 |
| 2 | 18,000 | 17,000 |
| 3 | 16,000 | 19,000 |
| 4 | 14,000 | 21,000 |
Express your response in percent but without the percent sign. Please round your answer to two decimal points.
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Algebra and Trigonometry
Authors: Ron Larson
10th edition
9781337514255, 1337271179, 133751425X, 978-1337271172
