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Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow...

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

Year Cash Flow (A) Cash Flow (B)
0 −$77,500 −$77,500
1 43,000 21,500
2 29,000 28,000
3 23,000 34,000
4 21,000 41,000
  1. Over what range of discount rates would you choose Project A? Project B? At what discount rate would you be indifferent between these two projects? Explain.
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