Matterhorn Mountain Gear is evaluating two projects with the following cash flows: Year Project Y 012 Project X -$ 316,400 147,600 165,100 -$ 293,800 138,050 155,250
Matterhorn Mountain Gear is evaluating two projects with the following cash flows: Year Project Y 012 Project X -$ 316,400 147,600 165,100 -$ 293,800 138,050 155,250
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Matterhorn Mountain Gear is evaluating two projects with the following cash flows:
Year
Project X
Project Y
0
-$ 316,400
-$ 293,800
1
147,600
138,050
2
165,100
155,250
3
130,200
121,000
What interest rate will make the NPV for the projects equal?
Multiple Choice
12.85%
19.30%
11.42%
.49%
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