Textiles Unlimited 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 above this interest rate?
A) 11.76 percent; A
B) 12.49 percent; A
C) 12.49 percent; B
D) 13.15 percent; A
E) 13.15 percent: B

Question

Textiles Unlimited 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 above this interest rate? 
A) 11.76 percent; A 
B) 12.49 percent; A 
C) 12.49 percent; B 
D) 13.15 percent; A 
E) 13.15 percent: B

Quizplus · Accepted Answer

The Answer of Textiles Unlimited 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 above this interest rate? 
A) 11.76 percent; A 
B) 12.49 percent; A 
C) 12.49 percent; B 
D) 13.15 percent; A 
E) 13.15 percent: B

Textiles Unlimited Has Gathered Projected Cash Flows for Two Projects