Two mutually exclusive projects available

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

Year Project R Project S

0    –$ 78,000 –$ 98,400

1 27,200 24,600

2 26,200 24,600

3 24,200 39,600

4 18,200 34,600

5 11,400 13,600

Requirement 1: What is the crossover rate for these two projects? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Internal rate of return

Requirement 2: What is the NPV of each project at the crossover rate? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

Reference no: EM13953595

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