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The crossover rate is the rate at which the NPV for two projects is the same. That is, it is the rate at which the two NPV profiles cross. At a discount rate of 9%, the NPV of Project 1 is: CF₀ = –4; CF₁ = 3; CF₂ = 5; CF₃ = 2; I = 9%; CPT → NPV = $4.51. Now perform the same calculations except that we need to set the unknown CF₀ = 0. The remaining entries are: CF₁ = 1.7; CF₂ = 3.2; CF₃ = 5.8; I = 9%; CPT → NPV = $8.73. Since by definition the crossover rate produces the same NPV for both projects, we know that both projects should have an NPV = $4.51. Since the NPV of Project 2 (with CF₀ = 0) is $8.73, the unknown cash flow must be a large enough negative amount to reduce the NPV for Project 2 from $8.73 to $4.51. Thus the unknown initial cash flow for Project 2 is determined as $4.51 = $8.73 + CF₀, or CF₀ = −$4.22.