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Suppose the two projects described below are mutually exclusive and the company is not practicing capital rationing. If the hurdle rate equals %, they will
Suppose the two projects described below are mutually exclusive and the company is not practicing capital rationing. If the hurdle rate equals %, they will be equivalent to each other from the perspective the investors. Round your answer to 1%.
Year | 0 | 1 | 2 | 3 | 4 | 5 |
Project A | -4000 | 100 | 350 | 550 | 2750 | 3500 |
Project B | -4000 | 2500 | 2250 | 500 | 200 | 100 |
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