Consider the two projects below. The Cash flows as well as the NPV and IRR for the projects are given. For both projects, the required rate of return is 10 percent. -------------------Cash Flows-------------- Year--------------0-----1-----2-----3-----4----------NPV---------IRR Project1--------36----36—36----36—36---------14.12-------16.37% Project2---------0-----0-----0-----0-----175-------19.53-------15.02% What discount rate would result in the same NPV for both projects? (A) A rate between 0.00 percent and 10.00 percent (B) A rate between 10.00 percent and 15.02 percent © A rate between 15.02 percent and 16.37 percent (D) a rate above 16.37 percent provide your reasoning/ calculations
sorry, it appears as though this has already been covered. http://www.analystforum.com/phorums/read.php?11,664168,664175#msg-664175