Question: A company considers three mutually exclusive projects that have the following monetary flux : INVESTISSMENT MF(YEAR1) MF(YEAR2) MF(YEAR3) MF(YEAR4) PROJECT(1) -500 000$ 100 000$ 200

A company considers three mutually exclusive projects that have the following monetary flux :

INVESTISSMENT

MF(YEAR1)

MF(YEAR2)

MF(YEAR3)

MF(YEAR4)

PROJECT(1)

-500 000$

100 000$

200 000$

300 000$

400 000$

PROJECT(2)

-500 000$

800 000$

100 000$

50 000$

25 000$

PROJECT(3)

-500 000$

0$

0$

0$

1000 000$

4) Determine the rate for which the NPV of projects 1 and 3 are identical.

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