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Woodson Inc. has two possible projects, Project A and Project B, with the following cash flows: At what required rate of return do the two

Woodson Inc. has two possible projects, Project A and Project B, with the following cash flows: At what required rate of return do the two projects have the same net present value (NPV)? (In other words, what is the "crossover rate" of the projects' NPV profiles?) a. 13.5% b. 15.8% c. 34.8% d. 21.7% e. 10.3%

Year

Project A

Project B

0

150,000

100,000

1

100,000

45,000

2

105,000

65,000

3

40,000

80,000

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