Question: Need answered within the hour. FED Lean has identified two mutually exclusive projects with the following cash flows. Year 0 1 2 3 4 5

Need answered within the hour.

FED Lean has identified two mutually exclusive projects with the following cash flows.

Year

0

1

2

3

4

5

Cash Flow Project A

-52,000.00

19,000.00

16,000.00

14,000.00

12,000.00

9,000.00

Cash Flow Project B

-52,000.00

8,000.00

12,000.00

16,000.00

22,000.00

20,000.00

The company requires a 12% rate of return from projects of this risk.

At what discount rate would you be indifferent between these two projects?

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