Also need: Accept of discount rate was at 1%? 10% You are considering two mutually exclusive projects, A and B. Project A costs $90,000 and generates cash flows of $15,000 for 8 years. Project B costs...


Also need: Accept of discount rate was at 1%?<br>10%<br>You are considering two mutually exclusive projects, A and B.<br>Project A costs $90,000 and generates cash flows of $15,000 for 8 years.<br>Project B costs $100,00D and generates cash flows of $1,000 for 5 years and then<br>cash flow of $135,000 for one year after that.<br>Report rates in percentage form to two decimal places i.e. 10.03% not 10%<br>Calculate what discount rate would make you indifferent between choosing one<br>project or another. i.e. what discount rate produces the same NPV for both projects?<br>What is the highest discount rate in which you can still produce a non-negative NPV<br>for at least one project?<br>tione 33-35<br>

Extracted text: Also need: Accept of discount rate was at 1%? 10% You are considering two mutually exclusive projects, A and B. Project A costs $90,000 and generates cash flows of $15,000 for 8 years. Project B costs $100,00D and generates cash flows of $1,000 for 5 years and then cash flow of $135,000 for one year after that. Report rates in percentage form to two decimal places i.e. 10.03% not 10% Calculate what discount rate would make you indifferent between choosing one project or another. i.e. what discount rate produces the same NPV for both projects? What is the highest discount rate in which you can still produce a non-negative NPV for at least one project? tione 33-35

Jun 09, 2022
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