Your firm has gathered projected cash flows for two projects. At what discount rate will you be
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Question:
Your firm has gathered projected cash flows for two projects. At what discount rate will you be indifferent between the two projects?
Year | Project A | Project B |
0 | -$45,000 | -$45,000 |
1 | 20,000 | 16,000 |
2 | 18,000 | 17,000 |
3 | 16,000 | 19,000 |
4 | 14,000 | 21,000 |
Express your response in percent but without the percent sign. Please round your answer to two decimal points.
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