Question: Consider the following two projects A and B: Year Cash Flow Project A Cash Flow Project B 0 -$100 -$100 1 50 20 2 40

Consider the following two projects A and B:
Year Cash Flow Project A Cash Flow Project B
0 -$100 -$100
1 50 20
2 40 40
3 40 50
4 30 60

The cost of capital at which an investor would be indifferent between the two projects is_____ percent.

		9.4
		10.8
		11.1
		21.0
		none of the above

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