Question: Seether, Inc., has the following two mutually exclusive projects available. Year Project R Project S 0 $ 82,500 $ 102,000 1 29,000 25,500 2 28,000
Seether, Inc., has the following two mutually exclusive projects available.
| Year | Project R | Project S | ||||
| 0 | $ | 82,500 |
| $ | 102,000 |
|
| 1 |
| 29,000 |
|
| 25,500 |
|
| 2 |
| 28,000 |
|
| 25,500 |
|
| 3 |
| 26,000 |
|
| 40,500 |
|
| 4 |
| 20,000 |
|
| 35,500 |
|
| 5 |
| 10,500 |
|
| 14,500 |
|
|
| ||||||
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 8.91 %
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 | $ |
|
| |
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