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Hanse, Inc., has the following two mutually exclusive projects available. Year O 1 2 5 N Project R -$82,000 28,800 27,800 25,800 19,800 10,600 Projects
Hanse, Inc., has the following two mutually exclusive projects available. Year O 1 2 5 N Project R -$82,000 28,800 27,800 25,800 19,800 10,600 Projects -$101,600 25,400 25,400 40,400 35,400 14,400 a. 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. b. 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.) a. Crossover rate 9.071% b. $ NPV Project R NPV Projects 28,397.54 7,801.50
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