Project 1 CF 0 -100 1 36 2 36 3 36 4 36 NPV 14.12 IRR 16.37 Project 2 CF 0 -100 1 0 2 0 3 0 4 175 NPV 19.53 IRR 15.02 Require return 10% How do you find the discount rate that will cause the same NPV? I know you need to add the difference in cash flows and create a new project But from there I am kinda lost…can somehelp help me out? Answer is a rate between 10 and 15.02 %
use the search function for “crossover rate”. It’s been discussed many, many times.
yeah bus, i saw your post before but still don’t follow…I will look again
nevermind, I found more thanks,