question archive East Carolina UniversityFINA 6144 Handy Enterprises has gathered projected cash flows for two projects
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East Carolina UniversityFINA 6144
Handy Enterprises has gathered projected cash flows for two projects. At what interest rate would the company be indifferent between the two projects? Which project is better if the required return is above this interest rate? Why?
Year |
Project I |
Project J |
0 |
-$215,000 |
-$215,000 |
1 |
104,000 |
75,000 |
2 |
93,000 |
86,000 |
3 |
79,000 |
96,000 |
4 |
72,000 |
105,000 |
|
|
|
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