Question: Hard Choice Inc. is considering the following two projects, which are mutually exclusive meaning the company can only take one. The cost of capital is

Hard Choice Inc. is considering the following two projects, which are

Hard Choice Inc. is considering the following two projects, which are mutually exclusive meaning the company can only take one. The cost of capital is 11.0%. 0 Project 1 Project 2 -$5,000 -$5,000 1 $440 $590 2 $300 $400 3 $400 $300 4 $610 $310 At what cost of capital are Hard Choice Inc. indifferent between the two projects? Note: This question will require Excel or a financial calculator. (Round your answer to 2 decimal places in % term, e.g. 1.11%.)

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