Question: James,Inc. is considering the following mutually exclusive projects: Project A Project B Year Cash Flow Cash Flow 0 -$5,000 -$5,000 1 200 2,000 2 800

James,Inc. is considering the following mutually exclusive projects:

Project A

Project B

Year

Cash Flow

Cash Flow

0

-$5,000

-$5,000

1

200

2,000

2

800

2,200

3

3,000

2,100

4

5,000

1,200

At what cost of capital will the net present value of the two projects be the same?

Select one:

a. 16.05%

b. 16.25%

c. 17.80%

d. 15.68%

e. 17.55%

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