Problem
1. Calculate the (a) NPV. (b) IRR. (c) PVI. (d) Payback period. (e) Discounted payback period for projects R and S.
2. Calculate the crossover rate (between projects R and S) based on the cash flow data mentioned above. Show the range of required rates for which either project-R or project-S would be preferred.
3. Based on your findings in requirements 1 and 2 above, what would be the decision of selection of project (when the required rate of return is 10.96 percent)?