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Year 0 1 2 3 4 Project I -$262, 000 113, 800 105, 400 89, 400 78, 400 a. Interest rate b. Project J -$
Year 0 1 2 3 4 Project I -$262, 000 113, 800 105, 400 89, 400 78, 400 a. Interest rate b. Project J -$ 262,000 92, 200 100, 200 102, 200 109, 200 a. At what interest rate would the company be indifferent between the two projects? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. Which project is better if the required return is above this interest rate? Project II 21.40 %
Crenshaw Enterprises has gathered projected cash flows for two projects. a. At what interest rate would the company be indifferent between the two projects? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16 . b. Which project is better if the required return is above this interest rateStep by Step Solution
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