Question: Seether, Inc., has the following two mutually exclusive projects available. Year Project R Project S 0 $-77,500 -$98,000 1 27,000 24,500 2 26,000 24,500 3

Seether, Inc., has the following two mutually exclusive projects available.

Year Project R Project S
0 $-77,500 -$98,000
1 27,000 24,500
2 26,000 24,500
3 24,000 39,500
4 18,000 34,500
5 11,500 13,500

What is the crossover rate for these two projects?

CROSSOVER RATE % = ???

What is the NPV of each project at the crossover rate?

PROJECT R NPV = $ ???

PROJECT S NPV =$ ???

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