12 Hanse, Incorporated, has the following two mutually exclusive projects available. 2 Year points 0 Project R -$ 77,000 1 26,800 2 25,800 3 23,800 4 5 17,800 11,600 Project S -$ 97,600 24,400 24,400 39,400 34,400 13,400 eBook References 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 %
12 Hanse, Incorporated, has the following two mutually exclusive projects available. 2 Year points 0 Project R -$ 77,000 1 26,800 2 25,800 3 23,800 4 5 17,800 11,600 Project S -$ 97,600 24,400 24,400 39,400 34,400 13,400 eBook References 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 %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:12
Hanse, Incorporated, has the following two mutually exclusive projects available.
2
Year
points
0
Project R
-$ 77,000
1
26,800
2
25,800
3
23,800
4
5
17,800
11,600
Project S
-$ 97,600
24,400
24,400
39,400
34,400
13,400
eBook
References
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
%
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