You are considering two mutually exclusive projects, A and B.

Project A costs $60,000 and generates cash flows of $10,000 for 10 years.

Project B costs $50,000 and generates cash flows of $500 for six years and then cash flows of $25,000 for four years.

Report rates in percentage form to two decimal places i.e. 10.03% not 10%

1- At what discount rate would make you indifferent between choosing one project or another?

2- Which project would you ACCEPT if your discount rate was 10%?

3- Which project would you ACCEPT if your discount rate was 5%?

4- What is the highest discount rate in which you can still produce a non-negative NPV?