Question: 37) You are considering the following two mutually exclusive projects. What is the discount rate at which you would be indifferent between these two projects

37) You are considering the following two mutually exclusive projects. What is the discount rate at which you would be indifferent between these two projects (the crossover rate)? Year 0 1 Project A -$56,000 14,000 33,000 41,000 Project B -$56,000 32,000 24,000 26,000 2 3 37 38) A six-year project has an initial requirement of $308,000 for fixed assets and $22,750for net working capital. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $89,120 and the discount rate is 7.90 percent. (a) What is the Net Present Value? 38 (a) (b) What is the Profitability Index? 38 (b)
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