Question: ABC is considering Projects S and L. These projects are mutually exclusive, equally risky, and not repeatable and their cash flows are shown below. At

ABC is considering Projects S and L. These projects are mutually exclusive, equally risky, and not repeatable and their cash flows are shown below. At the discount rate of _________ the NPV of S equals the NPV of L.

Year CFL CFS

0 -$1,025 -$1,025

1 $600 $100

2 $150 $200

3 $250 $600

4 $50 $750

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