Hanse, Incorporated, has the following two mutually exclusive projects available.
Year Project R Project S
0 -$ 80,000 -$ 100,000
1 28,000 25,000
2 27,000 25,000
3 25,000 40,000
4 19,000 35,000
5 11,000 14,000
a. What is the crossover rate for these two projects?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
b. What is the NPV of each project at the crossover rate?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
a. Crossover rate %
b. NPV Project R
NPV Project S