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 | −$320,800 | −$301,500 | ||||
| 1 | 145,400 | 136,950 | ||||
| 2 | 162,900 | 154,150 | ||||
| 3 | 128,000 | 119,900 | ||||
What interest rate will make the NPV for the projects equal?
-
17.47%
-
13.31%
-
14.97%
-
.16%
-
17.63%
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