Question: Gore Global is considering the two mutually exclusive projects below. summarized below. The cash flows from the projects are Flying Car Cash Flow year manbearpig

Gore Global is considering the two mutually exclusive projects below. summarized below.

The cash flows from the projects are Flying Car Cash Flow

year manbearpig project cash flow flying car cash flow
0 -100,000 -200,000
1 25,000 50,000
2 25,000 50,000
3 50,000 80,000
4 50,000 100,000

The two projects have the same risk. At what cost of capital would the two projects have the same net present value (NPV)?

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