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Matterhorn Mountain Gear is evaluating two projects with the following cash flows: Year Project X Project Y 0 -$320,000 -$300,100 1 145,800 137,150 2 163,300
Matterhorn Mountain Gear is evaluating two projects with the following cash flows:
| Year | Project X | Project Y | ||||
| 0 | -$320,000 | -$300,100 | ||||
| 1 | 145,800 | 137,150 | ||||
| 2 | 163,300 | 154,350 | ||||
| 3 | 128,400 | 120,100 | ||||
What interest rate will make the NPV for the projects equal?
- A. 14.53%
- B. 17.80%
- C. 12.92%
- D. 0.22%
- E. 18.02%
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