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Romboski, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 58,000 $ 58,000 1 34,000 21,200
Romboski, LLC, has identified the following two mutually exclusive projects: |
Year | Cash Flow (A) | Cash Flow (B) | ||||||
0 | $ | 58,000 | $ | 58,000 | ||||
1 | 34,000 | 21,200 | ||||||
2 | 28,000 | 25,200 | ||||||
3 | 20,000 | 30,000 | ||||||
4 | 13,600 | 25,200 | ||||||
Requirement 3: | |
(a) | Over what range of discount rates would you choose Project A? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
Project A | (Click to select)BelowAbove | @ % |
(b) | Over what range of discount rates would you choose Project B? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
Project B | (Click to select)AboveBelow | @ % |
(c) | At what discount rate would you be indifferent between these two projects? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Discount rate | % |
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