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Hodgkiss Enterprises has gathered projected cash flows for two projects. Year Project I Project J 0 -269,000 -269,000 1 113,100 96,400 2 106,800 100,900 3 90,800 102,900 4 79,800 109,900 At what interest rate would...

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Finance

Hodgkiss Enterprises has gathered projected cash flows for twoprojects.

YearProject IProject J
0-269,000-269,000
1113,10096,400
2106,800100,900
390,800102,900
479,800109,900

At what interest rate would the company be indifferent betweenthe two projects?

Which project is better if the required return is above thisinterest rate?

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Hodgkiss Enterprises has gathered projected cash flows for twoprojects.YearProject IProject J0-269,000-269,0001113,10096,4002106,800100,900390,800102,900479,800109,900At what interest rate would the company be indifferent betweenthe two projects?Which project is better if the required return is above thisinterest rate?

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