1. Over what range of discount rates would the company choose
project A? Project B? At what discount rate would the company be
indifferent between these two projects? Explain.
Please show your answer using Excel Functions.
YEAR 0 1 Cash Flow (A) $43,500 $21,400 $18,500 $13,800 $7,600 Cash Flow (B) -$43,500 $6,400 $14,700 $22,800 $25,200 2 3 4
YEAR 0 1 Cash Flow (A) $43,500 $21,400 $18,500 $13,800 $7,600 Cash Flow (B) -$43,500 $6,400 $14,700 $22,800 $25,200 2 3
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YEAR 0 1 Cash Flow (A) $43,500 $21,400 $18,500 $13,800 $7,600 Cash Flow (B) -$43,500 $6,400 $14,700 $22,800 $25,200 2 3
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