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Romboski, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 ?$ 63,000 ?$ 63,000 1 39,000 25,700
| Romboski, LLC, has identified the following two mutually exclusive projects: |
| Year | Cash Flow (A) | Cash Flow (B) | ||||||
| 0 | ?$ | 63,000 | ?$ | 63,000 | ||||
| 1 | 39,000 | 25,700 | ||||||
| 2 | 33,000 | 29,700 | ||||||
| 3 | 22,500 | 35,000 | ||||||
| 4 | 14,600 | 24,700 | ||||||
| Over what range of discount rates would you choose Project A? Over what range of discount rates would you choose Project B? At what discount rate would you be indifferent between these two projects? | ||||||||
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