Question
Romboski, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 69,000 $ 69,000 1 45,000 31,100
Romboski, LLC, has identified the following two mutually exclusive projects:
Year | Cash Flow (A) | Cash Flow (B) | ||||||
0 | $ | 69,000 | $ | 69,000 | ||||
1 | 45,000 | 31,100 | ||||||
2 | 39,000 | 35,100 | ||||||
3 | 25,500 | 41,000 | ||||||
4 | 15,800 | 24,100 | ||||||
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 @ %
(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 @ %
(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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