Suppose that you can choose only one of these projects. Which would you choose? The discount rate

Question:

Suppose that you can choose only one of these projects. Which would you choose? The discount rate is still 11%.

Year.........................Project A......................Project B

0.................................−$200.............................−$200

1.......................................80.................................100

2.......................................80.................................100

3.......................................80.................................100

4.......................................80.......................................

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...