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Use the following for Questions 1 - 5: You are considering two mutually exclusive projects, A and B. Project A costs $60,000 and generates cash

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Use the following for Questions 1 - 5: You are considering two mutually exclusive projects, A and B. Project A costs $60,000 and generates cash flows of $9,000 for 10 years. Project B costs $60,000 and generates cash flows of $2,000 for seven years and then cash flows of $27,000 for three years. Report rates in percentage form to two decimal places i.e. 10.03% not 10% Question 1 ( 3 points) Calculate what discount rate would make you indifferent between choosing one project or another. i.e. what discount rate produces the same NPV for both projects? Question 2 (1 point) Which project would you ACCEPT if your discount rate was 1% ? Which project would you ACCEPT if your discount rate was 1%? A) Project A B) Project B C) Both Project A and B D) Neither Project A or B Question 3 (1 point) Which project would you ACCEPT if your discount rate was 5% ? A) Project A B) Project B C) Both Project A and B Which project would you ACCEPT if your discount rate was 10%? A) Project A B) Project B C) Both Project A and B D) Neither Project A or B Question 5 (2 points) What is the highest discount rate in which you can still produce a non-negative NPV for at least one project

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