Question: Hudson Hotels is considering two mutually exclusive projects, Project A and Project B. The cash flows from the projects are summarized below: Year 0 1

 Hudson Hotels is considering two mutually exclusive projects, Project A and

Hudson Hotels is considering two mutually exclusive projects, Project A and Project B. The cash flows from the projects are summarized below: Year 0 1 2 Project A -$100,000 25,000 25,000 50,000 50,000 Project B -$200,000 50,000 50,000 80,000 100,000 3 4 At what cost of capital would Hudson be indifferent between the two projects? E DETAILS Select one: . 2.86% O b. 10.03% O c. 13.04% O d. 15.9% e. -24.45%

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