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Project X requires an investment of 1000 at time 0. The investment pays 700 at time 5 years and 700 at time 10 years. Project
Project X requires an investment of 1000 at time 0. The investment pays 700 at time 5 years and 700 at time 10 years. Project Y requires an investment of 800 at time 5 years. The investment pays 1016.31 at time 10 years. The net present values of the two projects are equal at an annual effective interest rate of i%. Calculate i. 4.0% 4.5% 5.0% 5.5% 6.0%
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