Your firm is considering the following mutually exclusive projects:

Using the discount rate of 16%, the NPV of Project A is $_______ , and the NPV of Project B is $_______ . Using the discount rate of 6%, the NPV of Project A is $_______ , and the NPV of Project B is $_________ . Using the discount rate of ________ , the NPV of the two projects are equal.

Project A $230,000 140,000 95,000 85,000 Project B $230,000 66,000 95,000 175,000 Year 0 2