Textiles Unlimited has gathered projected cash flows for two projects. At what interest rate would the company be indifferent between the two projects?   Year Cash Flow (A) Cash Flow (B)   0 -105,000 -105,000         1 42,200 52,600         2 34,600 39,400         3 38,700 35,500         4 45,500 30,100

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Textiles Unlimited has gathered projected cash flows for two projects. At what interest rate would the company be indifferent between the two projects?

 

Year

Cash Flow (A)

Cash Flow (B)

 

0

-105,000

-105,000

 

 

 

 

1

42,200

52,600

 

 

 

 

2

34,600

39,400

 

 

 

 

3

38,700

35,500

 

 

 

 

4

45,500

30,100

 

 

 

 

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