Question: 12. Mayfair Corporation is considering two mutually exclusive projects, S and L. The net after tax cash flows are: Year Project S Project L O

12. Mayfair Corporation is considering two mutually exclusive projects, S and

12. Mayfair Corporation is considering two mutually exclusive projects, S and L. The net after tax cash flows are: Year Project S Project L O -$10,000 -$10,000 1 $6,000 $1,000 2 $4,000 $3,000 3 $3,000 $4,000 4 $2,000 $8,000 At what WACC would the NPVs of Project S and Project L be equal (Hint: compute the crossover discount rate)? a. 4.45% b. 5.90% O c. 6.74% d. 8.28% e. 9.11%

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