In: Finance
Seether, Inc., has the following two mutually exclusive projects
available.
Year | Project R | Project S | ||||
0 | –$ | 80,500 | –$ | 100,400 | ||
1 | 28,200 | 25,100 | ||||
2 | 27,200 | 25,100 | ||||
3 | 25,200 | 40,100 | ||||
4 | 19,200 | 35,100 | ||||
5 | 10,900 | 14,100 | ||||
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 | $ |