J. Marcel Enterprises has gathered projected cash flows for two projects.

Year	Project I	Project J
0	$265,000	$265,000
1	113,500	94,000
2	106,000	100,500
3	90,000	102,500
4	79,000	109,500

Requirement 1:

At what interest rate would the company be indifferent between the two projects?

Interest rate of return

%

Requirement 2:

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