At what discount rate company indifferent between projects


Garage, Inc., has identified the following two mutually exclusive projects:

Year    Cash Flow (A)           Cash Flow (B)

0       -$  29,700                -$ 29,700          

1            15,100                     4,650

2            13,000                   10,150          

3             9,550                    15,900          

4             5,450                    17,500          

At what discount rate would the company be indifferent between these two projects?

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