Flint Fruits is considering two equally risky,mutually exclusive projects,Projects A and B,that have the following cash flows:At what WACC would the two projects have the same NPV? $\begin{array}{ccc}
\underline { \text { Year } }& \underline { \text { Project A } }& \underline { \text { Project B } }\
0 & -\$ 100,000 & -\$ 100,000 \
1 & 40,000 & 30,000 \
2 & 25,000 & 15,000 \
3 & 70,000 & 80,000 \
4 & 40,000 & 55,000
\end{array}$
A)9.56%
B)10.33%
C)11.21%
D)12.55%

Question

Flint Fruits is considering two equally risky,mutually exclusive projects,Projects A and B,that have the following cash flows:At what WACC would the two projects have the same NPV? $\begin{array}{ccc}
 \underline { \text { Year } }& \underline { \text { Project  A  } }& \underline { \text { Project B } }\
0 & -\$ 100,000 & -\$ 100,000 \
1 & 40,000 & 30,000 \
2 & 25,000 & 15,000 \
3 & 70,000 & 80,000 \
4 & 40,000 & 55,000
\end{array}$
A)9.56%
B)10.33%
C)11.21%
D)12.55%

Quizplus · Accepted Answer

The Answer of Flint Fruits is considering two equally risky,mutually exclusive projects,Projects A and B,that have the following cash flows:At what WACC would the two projects have the same NPV? $\begin{array}{ccc}
 \underline { \text { Year } }& \underline { \text { Project  A  } }& \underline { \text { Project B } }\
0 & -\$ 100,000 & -\$ 100,000 \
1 & 40,000 & 30,000 \
2 & 25,000 & 15,000 \
3 & 70,000 & 80,000 \
4 & 40,000 & 55,000
\end{array}$
A)9.56%
B)10.33%
C)11.21%
D)12.55%

Flint Fruits Is Considering Two Equally Risky,mutually Exclusive Projects,Projects a and B,that