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Year A B 0 -75,000 -75,000 1 40,000 10,000 2 27,000 15,200 3 20,000 67,967 By how much should the cost of capital (discount rate)

Year A B

0 -75,000 -75,000

1 40,000 10,000

2 27,000 15,200

3 20,000 67,967

By how much should the cost of capital (discount rate) for the losing project (based on NPV) be increased or decreased in order for it to be selected over the winning project (based on NPV)?

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