Question: Crenshaw Enterprises has gathered projected cash flows for two projects. Year Project I Project J 0 -$264,000-$264,000 1 113,600 93,400 2 105,800 100,400 3

Crenshaw Enterprises has gathered projected cash flows for two projects. Year Project

Crenshaw Enterprises has gathered projected cash flows for two projects. Year Project I Project J 0 -$264,000-$264,000 1 113,600 93,400 2 105,800 100,400 3 89,800 102,400 4 78,800 109,400 a. At what interest rate would the company be indifferent between the two projects? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. Which project is better if the required return is above this interest rate? Answer is not complete. a. Interest rate b. 23.37 %

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