Project A and B have 4 year timelines. Project A has an initial investment of $120,000 and cash inﬂows of $50,000, $50,000 $30,000 and $30,000. Project B has an initial investment of $190,000
And cash inﬂows of $80,000, $70,000, $70,000 and $60,000. At what rate of interest would a
Company be indifferent at choosing project A or B?
A) 25.77%
B) 24.66%
C) 23.55%
D) 22.44%
E) 21.33%

Question

Quizplus · Accepted Answer

The Answer of Project A and B have 4 year timelines. Project A has an initial investment of $120,000 and cash inﬂows of $50,000, $50,000 $30,000 and $30,000. Project B has an initial investment of $190,000
And cash inﬂows of $80,000, $70,000, $70,000 and $60,000. At what rate of interest would a
Company be indifferent at choosing project A or B?
A) 25.77%
B) 24.66%
C) 23.55%
D) 22.44%
E) 21.33%

Project a and B Have 4 Year Timelines