Two projects, A and B, have the following after-tax cash flows:
If the firm's WACC is 11 percent, at what cost of capital do these projects have the same NPV?
A) 12.01%
B) 12.38%
C) 13.91%
D) 14.49%
E) 16.26%

Question

Two projects, A and B, have the following after-tax cash flows:
 If the firm's WACC is 11 percent, at what cost of capital do these projects have the same NPV?
A) 12.01% 
B) 12.38% 
C) 13.91% 
D) 14.49% 
E) 16.26%

Quizplus · Accepted Answer

The Answer of Two projects, A and B, have the following after-tax cash flows:
 If the firm's WACC is 11 percent, at what cost of capital do these projects have the same NPV?
A) 12.01% 
B) 12.38% 
C) 13.91% 
D) 14.49% 
E) 16.26%

Two Projects, a and B, Have the Following After-Tax Cash