At what weighted average cost of capital two project same

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Question - BURNER Co. is considering two mutuaIlly exclusive projects, Project A and Project B. The projects have the following cash flows:

Year

Project A Cash Flow

Project B Cash Flow

0

-100,000

-190,000

1

30,000

30,000

2

35,000

35,000

3

40,000

100,000

4

40,000

100,000

The two projects are equally risky. At what weighted average cost of capital would the two projects have the same net present value (NPV)?

Reference no: EM133081484

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