Question: You are considering two mutually exclusive projects, A and B. Project A costs $60,000 and generates cash flows of $9,000 for 10 years. Project B

 You are considering two mutually exclusive projects, A and B. Project
A costs $60,000 and generates cash flows of $9,000 for 10 years.

You are considering two mutually exclusive projects, A and B. Project A costs $60,000 and generates cash flows of $9,000 for 10 years. Project B costs $60,000 and generates cash flows of $2,000 for seven years and then cash flows of $27,000 for three years. Report rates in percentage form to two decimal places i.e. 10.03% not 10% Question 1 (3 points) Calculate what discount rate would make you indifferent between choosing one project or another. i.e. what discount rate produces the same NPV for both projects? Which project would you ACCEPT if your discount rate was 1%? O A) Project A B) Project B OC) Both Project A and B OD) Neither Project A or B

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