Rivoli Roofing is considering mutually exclusive Projects A and B,which have the following cash flows: $\begin{array}{crr}
\text { Year } & \begin{array}{c}
\text { Froject } A \
\text { Cash Flow }
\end{array} &{\begin{array}{c}
\text { Project B } \
\text { Cash Flow }
\end{array}} \
\hline 0 & -\$ 200 & -\$ 300 \
1 & 20 & 90 \
2 & 30 & 70 \
3 & 40 & 60 \
4 & 50 & 50 \
5 & 60 & 40
\end{array}$ At what cost of capital would the two projects have the same NPV?
A)6.22%
B)7.11%
C)8.45%
D)9.32%

Question

Rivoli Roofing is considering mutually exclusive Projects A and B,which have the following cash flows:​​​ $\begin{array}{crr}
\text { Year } & \begin{array}{c}
\text { Froject } A \
\text { Cash Flow }
\end{array} &{\begin{array}{c}
\text { Project B } \
\text { Cash Flow }
\end{array}} \
\hline   0 & -\$ 200 & -\$ 300 \
1 & 20 & 90 \
2 & 30 & 70 \
3 & 40 & 60 \
4 & 50 & 50 \
5 & 60 & 40
\end{array}$ At what cost of capital would the two projects have the same NPV?
A)6.22%
B)7.11%
C)8.45%
D)9.32%

Quizplus · Accepted Answer

The Answer of Rivoli Roofing is considering mutually exclusive Projects A and B,which have the following cash flows:​​​ $\begin{array}{crr}
\text { Year } & \begin{array}{c}
\text { Froject } A \
\text { Cash Flow }
\end{array} &{\begin{array}{c}
\text { Project B } \
\text { Cash Flow }
\end{array}} \
\hline   0 & -\$ 200 & -\$ 300 \
1 & 20 & 90 \
2 & 30 & 70 \
3 & 40 & 60 \
4 & 50 & 50 \
5 & 60 & 40
\end{array}$ At what cost of capital would the two projects have the same NPV?
A)6.22%
B)7.11%
C)8.45%
D)9.32%

Rivoli Roofing Is Considering Mutually Exclusive Projects a and B,which