Question: Garage, Inc., has identified the following two mutually exclusive projects: Year Cash Flow A Cash Flow B 0

Garage, Inc., has identified the following two mutually exclusive projects:

Year     Cash Flow A         Cash Flow B

0               -$38,500             -$39,200

1               18,900                   8,800

2              17,350                   14,200

3               19,100                 21,900

4                7,600                    22,900

At which rate would you be indifferent about which project to pick?

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