Question: 4. Please solve in Excel; round to 3 decimal places: YEAR CASHFLOW PROJECT A CASHFLOW PROJECT B 0 ($105,000.00) ($105,000.00) 1 $54,000.00 $21,000.00 2 $45,000.00

4. Please solve in Excel; round to 3 decimal places:

YEAR CASHFLOW PROJECT A CASHFLOW PROJECT B
0 ($105,000.00) ($105,000.00)
1 $54,000.00 $21,000.00
2 $45,000.00 $35,000.00
3 $25,000.00 $45,000.00
4 $15,000.00 $60,000.00

Hurdle rate =15%

a. What is the IRR for Project A (solve in Excel)?

b. What is the IRR for Project B (solve in Excel)?

c. These projects are mutually exclusive. Which one should you select and why?

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