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Indifferent between two projects

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ABC Inc. has a choice between two mutually exclusive projects, Project I has cash flows of -$48,000, $20,200, $20,500, and $19,000 for Years 0 to 3, respectively. Project II has a cost of $45,000 and annual cash inflows of $18,500 for 3 years. At what rate would you be indifferent between these two projects? Which project will you take if the required return is 10%.

Reference no: EM132502326

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