Seether, Inc., has the following two mutually exclusive projects available. What is the crossover rate for these two projects? What is the NPV of each project at the crossover rate? Solution Year Project R Project S Difference Dis factor 9% Diff dis CF Dis CF R Dis CF S 0 -83000 - 102400 -19400 1 -19400 (83,000.00) (102,400.00) 1 29200 25600 -3600 0.91743 -3302.748 26,788.96 23,486.21 2 28200 25600 -2600 0.84167 -2188.342 23,735.09 21,546.75 3 26200 40600 14400 0.77218 11119.392 20,231.12 31,350.51 4 20200 35600 15400 0.70842 10909.668 14,310.08 25,219.75 5 10400 14600 4200 0.64993 2729.706 6,759.27 9,488.98 NPV -132.324 8,824.52 8,692.20 cross over rate approx= 9% NPV R 8,824.52 S 8,692.20.