Question

Matterhorn Mountain Gear is evaluating two projects with the following cash flows: Year Project X Project...

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?

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Answer #1

­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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