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9) Matterhorn Mountain Gear is evaluating two projects with the following cash flows: Year Project X Project Y 0 -$317,600 -$295,900 1 147,000 137,750 2
9) Matterhorn Mountain Gear is evaluating two projects with the following cash flows:
Year | Project X | Project Y |
| ||||
0 |
| -$317,600 |
|
| -$295,900 |
| |
1 |
| 147,000 |
|
| 137,750 |
| |
2 |
| 164,500 |
|
| 154,950 |
| |
3 |
| 129,600 |
|
| 120,700 |
| |
What interest rate will make the NPV for the projects equal? 9) _______
A) 18.80% B) 13.36% C) 11.88% D) 0.40% E) 19.20%
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