Hanse, Inc., has the following two mutually exclusive projects available. Project R -$76,500 26,600 25,600 23,600 17,600 11,700 Project S -$97,200 24,300 24,300 39,300 34,300 13,300 Year a. What is the crossover rate for these two projects? (Do not round intermed O123¢5

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter8: Securities Law Considerations When Obtaining Venture Financing
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Hanse, Inc., has the following two mutually exclusive projects available.
Project R
-$76,500
26,600
25,600
23,600
17,600
11,700
Project S
-$97,200
24,300
24,300
39,300
34,300
13,300
Year
1
3
4
5
a. What is the
ossover 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.)
Crossover rate
%
а.
b.
NPV Project R
NPV Project S
Transcribed Image Text:Hanse, Inc., has the following two mutually exclusive projects available. Project R -$76,500 26,600 25,600 23,600 17,600 11,700 Project S -$97,200 24,300 24,300 39,300 34,300 13,300 Year 1 3 4 5 a. What is the ossover 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.) Crossover rate % а. b. NPV Project R NPV Project S
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