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Two mutually exclusive investment opportunities require an initial investment of $100,000 and generate the following cash...

Two mutually exclusive investment opportunities require an initial investment of $100,000 and generate the following cash flows. At what cost of capital would an investor regard both opportunities as being equivalent?

Project A

Project B

Time 0

-100,000

-100,000

Time 1

50,000

40,000

Time 2

45,000

30,000

Time 3

30,000

60,000

14%

18%

20%

24%
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