Question: (ALL WORK MOST BE DONE IN EXCEL)(SHOW YOUR WORK) Dude Corporation is considering two mutually exclusive capital projects with the following cash flows: YEAR PROJECT

(ALL WORK MOST BE DONE IN EXCEL)(SHOW YOUR WORK)

Dude Corporation is considering two mutually exclusive capital projects with the following cash flows:

YEAR

PROJECT A

PROJECT B

0

($165,000)

($165,000)

1

$25,000

$90,000

2

$25,000

$80,000

3

$50,000

$60,000

4

$50,000

$40,000

5

$225,000

$30,000

  1. Calculate the IRR, MIRR and NPV for each project. Assume Dude Corporations WACC is 12.5%
  2. Assuming the projects are mutually exclusive (can only investment in one), explain which project should be selected and why.

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