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Hodgkiss Enterprises has gathered projected cash flows for two projects. At what interest rate would the company be indifferent between the two projects? Which project is better if the required return is 10.5 percent?

Year Project I Project J

0 -$172,000 -$172,000

1 83,2000 60,000

2 74,400 68,800

3 63,200 76,800

4 57,800 84,000

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92091606

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