5 Hanse, Inc., has the following two mutually exclusive projects available. 15:58 Year 012345 Project R -$78,500 Project S -$98,800 27,400 24,700 26,400 24,700 24,400 39,700 18,400 11,300 34,700 13,700 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 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
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5
Hanse, Inc., has the following two mutually exclusive projects available.
15:58
Year
012345
Project R
-$78,500
Project S
-$98,800
27,400
24,700
26,400
24,700
24,400
39,700
18,400
11,300
34,700
13,700
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
b.
NPV Project R
NPV Project S
%
Transcribed Image Text:5 Hanse, Inc., has the following two mutually exclusive projects available. 15:58 Year 012345 Project R -$78,500 Project S -$98,800 27,400 24,700 26,400 24,700 24,400 39,700 18,400 11,300 34,700 13,700 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 b. NPV Project R NPV Project S %
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