Matterhorn Mountain Gear is evaluating two projects with the
following cash flows:
Year | Project X | Project Y | ||||
0 | −$319,000 | −$298,350 | ||||
1 | 146,300 | 137,400 | ||||
2 | 163,800 | 154,600 | ||||
3 | 128,900 | 120,350 | ||||
What interest rate will make the NPV for the projects equal?
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
WE HAVE TO FIND HERE INCREMENTAL IRR OR CROSS OVER RATE
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