Seether, Inc., has the following two mutually exclusive projects available.
| Year |
Project R |
Project S |
| 0 |
-$ |
78,000 |
|
-$ |
98,400 |
|
| 1 |
|
27,200 |
|
|
24,600 |
|
| 2 |
|
26,200 |
|
|
24,600 |
|
| 3 |
|
24,200 |
|
|
39,600 |
|
| 4 |
|
18,200 |
|
|
34,600 |
|
| 5 |
|
11,400 |
|
|
13,600 |
|
|
What is the crossover rate for these two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Crossover rate %
What is the NPV of each project at the crossover rate? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
|
NPV |
| Project R |
$ |
| Project S |
$ |