Question: 2 . Two new Internet site projects are proposed to a young start up company. Project A will cost $ 2 5 0 , 0

2. Two new Internet site projects are proposed to a young startup company. Project A will cost $250,000 to implement and is expected to have annual net cash flows of $75,000. Project B will cost $150,000 to implement and should generate annual net cash flows of $52,000.
b. The company is more concerned about longer term profitability. At what interest rate (hurdle rate) the company would be indifferent between the two potions if they plan to revamp the site in 10 years.

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