c. At what discount rate would the company be indifferent between these two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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10C

Bruin, Inc., has identified the following two mutually exclusive projects:
Cash Flow
Cash Flow
Year
(A)
-$28,100
13,500
11,400
8,750
4,650
(B)
-$28,100
3,850
9,350
14,300
15,900
-23 4
Transcribed Image Text:Bruin, Inc., has identified the following two mutually exclusive projects: Cash Flow Cash Flow Year (A) -$28,100 13,500 11,400 8,750 4,650 (B) -$28,100 3,850 9,350 14,300 15,900 -23 4
c. At what discount rate would the company be indifferent between these two
projects? (Do not round intermediate calculations and enter your answer
as a percent rounded to 2 decimal places, e.g., 32.16.)
Discount rate
%
Transcribed Image Text:c. At what discount rate would the company be indifferent between these two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Discount rate %
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