Question: Hynix Co. is considering two mutually exclusive projects, Project A and Project B. The projects are of equal risk and have the following cash flows:

Hynix Co. is considering two mutually exclusive projects, Project A and Project B. The projects are of equal risk and have the following

Hynix Co. is considering two mutually exclusive projects, Project A and Project B. The projects are of equal risk and have the following cash flows: Project A Project B Year Cash Flows Cash Flows o -$110,000 -$100,000 40,000 80,000 40,000 55,000 ~ 50,000 20,000 7 90,000 20,000 At what rate (WACC) would the two projects have the same NPV (i.e., crossover rate)? At what rate (WACC) would the two projects have the same NPV (i.e., crossover rate)? 17.75% 8.47% 10.64% 9.12% 13.85%

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