What interest rate could indifferent between two projects

Reference no: EM1375365

Crossover Point. J. Marcel Enterprises has gathered projected cash flows for two projects. At what interest rate could company be indifferent between two projects? Which project is better if needed return is above this interest rate and why?

Year                                    Project I              Project J
0                                          $250,000           $250,000
1                                          1 1 5,000            85,000
2                                          1 03,000             99,000
3                                          87,000                1 01 ,000
4                                          76,000                1 08,000

Reference no: EM1375365

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