Question: HH Companies has identified two mutually exclusive projects. Project A has cash flows of $40,000, $21,200, $16,800, and $14,000 for Years 0 to 3, respectively.

  1. HH Companies has identified two mutually exclusive projects. Project A has cash flows of $40,000, $21,200, $16,800, and $14,000 for Years 0 to 3, respectively. Project B has a cost of $38,000 and annual cash inflows of $25,500 for 2 years. At what rate would you be indifferent between these two projects?

    6.34 percent

    1.72 percent

    9.41 percent

    4.38 percent

    8.28 percent

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