Question: Your company is considering two mutually exclusive projects, Project A and Project B. The cash flows from the projects are summarized below: Year Project A
Your company is considering two mutually exclusive projects, Project A and Project B. The cash flows from the projects are summarized below: Year Project A Project B Cash Flow Cash Flow ($100,000).XX XXX) $25,000 $30,000 $25,000 $40,000 $45,000 $50,000 $55,000 $60,000 $60,000 $100,000 The firm has finally determined that the cost (T-O cash flow) of Project B is $144,000. Based on this information, determine the discount rate at which the NPV for both projects is the same. 14.03% @ 12.5996 14.79% 13.30% 15.57%
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