Year 0 1 2 Project A 3 41 5 6 7 Cash flow ($) (250,000) 82,000...

 

Transcribed Image Text:

Year 0 1 2 Project A 3 41 5 6 7 Cash flow ($) (250,000) 82,000 88,000 83,000 79,000 10,000 20,000 10,000 Project B (250,000) 5,000 22,000 30,000 62,000 115,000 137,000 152,000 1. If required rate is 12.5%, what is NPV for each project. 2. Calculate IRR for each project 3. Calculate crossover Point of the two projects. 4. Calculate pay back period for each project 5. Based on the above results, Which project should the company choose? (Suppose the company can only choose one project) Explain. (please use excel functions to calculate NRV, IRR and Crossover point) Please show the details of your calculation including the excel functions you used Year 0 1 2 Project A 3 41 5 6 7 Cash flow ($) (250,000) 82,000 88,000 83,000 79,000 10,000 20,000 10,000 Project B (250,000) 5,000 22,000 30,000 62,000 115,000 137,000 152,000 1. If required rate is 12.5%, what is NPV for each project. 2. Calculate IRR for each project 3. Calculate crossover Point of the two projects. 4. Calculate pay back period for each project 5. Based on the above results, Which project should the company choose? (Suppose the company can only choose one project) Explain. (please use excel functions to calculate NRV, IRR and Crossover point) Please show the details of your calculation including the excel functions you used