Handy Enterprises has gathered projected cash flows for two projects.

Year	Project I	Project J
0	$258,000	$258,000
1	114,200	89,800
2	104,600	99,800
3	88,600	101,800
4	77,600	108,800

Requirement 1:

At what interest rate would the company be indifferent between the two projects? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g.,32.16).)

Interest rate

%

Requirement 2:

Which project is better if the required return is above this interest rate?

(Click to select)Project IProject J

References

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