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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
| Handy Enterprises has gathered projected cash flows for two projects. |
| Year | Project I | Project J |
| 0 | Ac€?o$252,000     | Ac€?o$252,000     |
| 1 | 114,800 Â Â Â Â | 86,200 Â Â Â Â |
| 2 | 103,400 Â Â Â Â | 99,200 Â Â Â Â |
| 3 | 87,400 Â Â Â Â | 101,200 Â Â Â Â |
| 4 | 76,400 Â Â Â Â | 108,200 Â Â Â Â |
| Â | ||
| Requirement 1: |
|
At what interest rate would the company be indifferent between the two projects? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g.,32.16).) |
| Â Â Interest rate | % |
| Requirement 2: |
| Which project is better if the required return is above this interest rate? |
| Â Â |
| (Click to select)Project JProject I |
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