Zayas, LLC, has identified the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B)

0 $ 62,000 $ 62,000

1- 38,000 24,800

2 - 32,000 28,800

3 - 22,000 34,000

4 - 14,400 24,800

Required return is 13%.

1. Over what range of discount rates would you choose Project A? Above ------%

2. Over what range of discount rates would you Project B? Below-------%

3. At what discount rate would you be inidifferent between the two?