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

question 33

Multiple Choice

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%

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