Question: 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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