Given the following cash flows for a two mutually exclusive projects (A&B) and assuming 16% cost of capital;
year | Project A | Project B |
0 | -5000 | -1000 |
1 | 2500 | 600 |
2 | 2500 | 600 |
3 | 2500 | 600 |
2) At what rate would you be indifferent between those two mutually exclusive projects?
20.04% |
||
23.38% |
||
1.35% |
||
1.12% |
||
36.31% |
Get Answers For Free
Most questions answered within 1 hours.