Business
Business, 23.04.2020 22:32, gajdmaciej9502

At what cost of capital would you be indifferent between the two projects based on their NPVs? What is the relevant range of discount rates where you would accept project M and at what discount rates would project T be accepted if they are mutually exclusive?

Consider the following projects with a cost of capital = 14%

Year Project M Project T?
0 -$150,000 -$120,000
1 50,000 72,000
2 90,000 50,000
3 70,000 40,000

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Answers: 2

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