Question: BURNER Co. is considering two mutuaIlly exclusive projects, Project A and Project B. The projects have the following cash flows: Project A Project B Year

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

Project A Project B
Year Cash Flow Cash Flow
0 -100,000 -190,000
1 30,000 30,000
2 35,000 35,000
3 40,000 100,000
4 40,000 100,000

The two projects are equally risky. At what weighted average cost of capital would the two projects have the same net present value (NPV)?

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