Question

Consider the following 2 project. Machine A ($10,000) Machine B ($10,000) Inflows Inflows Year 1 $8,000...

Consider the following 2 project.

Machine A ($10,000) Machine B ($10,000)
Inflows Inflows
Year 1 $8,000 $1,000
Year 2 2,000 2,000
Year 3 2,000 2,000
Year 4 1,000 11,000

The cost of capital that would make the firm indifferent between these 2 projects is ( ???).

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