Question: Seether, Inc., has the following two mutually exclusive projects available. Year Project R Project S 0 $ 84,000 $ 103,200 1 29,600 25,800 2 28,600
Seether, Inc., has the following two mutually exclusive projects available.
| Year | Project R | Project S | ||||
| 0 | $ | 84,000 | $ | 103,200 | ||
| 1 | 29,600 | 25,800 | ||||
| 2 | 28,600 | 25,800 | ||||
| 3 | 26,600 | 40,800 | ||||
| 4 | 20,600 | 35,800 | ||||
| 5 | 10,200 | 14,800 | ||||
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
Proj R
Proj S
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
