Question
We are considering two projects, A and B and are trying to decide which one to accept. (Show your work) Period Project A Project B
We are considering two projects, A and B and are trying to decide which one to accept. (Show your work)
| Period | Project A | Project B |
| 0 | -500 | -400 |
| 1 | 325 | 325 |
| 2 | 325 | 200 |
a. If the rate for both projects is 10 percent, which project should you accept and why?
b. If the rate for both projects is 15 percent, which project should you accept and why?
c. At what discount rate will you be indifferent between the two projects?
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International Business The Challenges Of Globalization
Authors: John J. Wild, Kenneth L. Wild
9th Edition
0134729226, 978-0134729220
