(solution) Need answered within the hour. FED Lean has identified two

(solution) Need answered within the hour. FED Lean has identified two

Need answered within the hour.

FED Lean has identified two mutually exclusive projects with the following cash flows.

Year

0

1

2

3

4

5

Cash Flow Project A

-52,000.00

19,000.00

16,000.00

14,000.00

12,000.00

9,000.00

Cash Flow Project B

-52,000.00

8,000.00

12,000.00

16,000.00

22,000.00

20,000.00

The company requires a 12% rate of return from projects of this risk.

At what discount rate would you be indifferent between these two projects?