BMW Company is considering investing in Project R, which will require an outlay of $800 million. The project will have a five-year life and at the end of that time, the equipment will be scrapped. The following information about two mutually exclusive projects R and T is relevant for requirements 1(a) to 1(c) only.

The Project R is expected to generate the following annual cash flows:

	Year-1	Year-2	Year-3	Year-4	Year-5
Cash inflows	$610m	$520m	$510m	$310m	$160
Cash outflows	$210m	$190m	$190m	$160m	$90

The company has a required rate of return of 15.95%. The company normally has three-year discounted payback criteria.

The alternative Project-T offers the following net cash flows:

Year-0 ($800m); Year-1 $199m; Year-2 $250m; Year-3 $323m; Year-4 $368m; and Year-5 $368m.

Question: Calculate the crossover rate (between projects R and T) based on the above cash flow data. Show the range of required rates for which either Project-R or Project-T would be preferred.