What discount rate would lead to the same npv for both


Question: Compare the two mutually exclusive projects shown below:

Time

Project A

Project B

0

-725

-850

1

100

200

2

250

200

3

250

200

4

200

200

5

100

200

6

100

200

7

100

200

a. What discount rate would lead to the same NPV for both projects?

b. If the appropriate cost of capital is 10%, which project should be accepted?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: What discount rate would lead to the same npv for both
Reference No:- TGS02754270

Expected delivery within 24 Hours