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show cash flow diagram n 2. (20 points) Consider the following two mutually exclusive projects: Project A Project B 0 -$10,000 $12,000 1 $3000 $5000
show cash flow diagram
n 2. (20 points) Consider the following two mutually exclusive projects: Project A Project B 0 -$10,000 $12,000 1 $3000 $5000 2 $3000 * 1.1 $5000-X 3 $3000 * 1.1 *1.1 $5000-2X 4 $3000 *1.1 *1.1*1.1 $5000-3X 5 $3000*1.1*1.1*1.1*1.1 $5000-4X The life cycle of project A and B is the same as 5 years. What value of X would make the decision maker indifferent between A and B at an interest rate of 10%Step by Step Solution
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