Question

The net present values (NPV) of two mining project proposals A and B are as given.

[NPVA=0.01i20.02i+4.44][ NPV_A = -0.01i^2 - 0.02i + 4.44 ]

[NPVB=0.03i20.01i+6.55][ NPV_B = -0.03i^2 - 0.01i + 6.55 ]

where, (ii) is discount rate.

The required rate of return for which both the proposals have equal possibility of acceptance and rejection, is ______. (round off to two decimal places)

NAT

Min: 10 Max: 11

Answer: 10.5

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