Question: Burn Co. is considering two mutually exclusive projects, Project A and Project B. The projects have the following cash flows: YEAR A- CASH FLOW B-

Burn Co. is considering two mutually exclusive projects, Project A and Project B. The projects have the following cash flows:

YEAR A- CASH FLOW B- CASH FLOW
0 (100000) (190000)
1 30,000 30000
2 35,000 35000
3 40,000 100000
4 40,000 100000

The two projects are equally risky. AT WHAT WEIGHTED AVERAGE COST OF CAPITAL WOULD THE TWO PROJECTS HAVE THE SAME NET PRESENT VALUE (NPV) ANSWER IN PERCENTAGE. ROUND 2 DECIMAL PLACES.

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