What discount rate would lead to the same npv

Reference no: EM131959797

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?

Reference no: EM131959797

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