Chestnut Tree Farms has identified the following two mutually exclusive projects: Year...

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Accounting

Chestnut Tree Farms has identified the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B)
0 -$60,000 -$60,000
1 20,800 39,500
2 14,300 12,600
3 17,200 11,500
4 27,900 11,600

Over what range of discount rates would you choose Project A?

a. 8.28 percent or less

b. 8.28 percent or more

c. 9.33 percent or more

d. 9.55 percent or less

e. 9.55 percent or more

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