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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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