Question: B E F G H ON 2 3 4 6 7 8 Excel Problem 4 Show All Excel Work (18 Points) You are evaluating two

 B E F G H ON 2 3 4 6 7

B E F G H ON 2 3 4 6 7 8 Excel Problem 4 Show All Excel Work (18 Points) You are evaluating two mutually exclusive projects, A and B. The cash flows are below. What is the IRR for each project! What is the crossover rate for these projects? Which project is acceptable if the appropriate discount rate is 5 percent? What if the rates is 15 percent? Is there a ranking conflict for these two projects? If so, over what range of rates is there a 12 13 Draw the NPV Profile including all projects. Use the given range for the interest rate. 10 11 conflict? 14 15 16 17 18 19 20 21 22 23 24 Inputs Time 0 1 2 2 4 Conflict? Crossover Rate Acceptable at 5% Acceptable at 15% Conflict Range Explain Explain -$1,000,000 $125,000 $130.000 $135,000 $140,000 -$1,400,000 $170,000 $200,000 $210,000 $215.000 B E F G H ON 2 3 4 6 7 8 Excel Problem 4 Show All Excel Work (18 Points) You are evaluating two mutually exclusive projects, A and B. The cash flows are below. What is the IRR for each project! What is the crossover rate for these projects? Which project is acceptable if the appropriate discount rate is 5 percent? What if the rates is 15 percent? Is there a ranking conflict for these two projects? If so, over what range of rates is there a 12 13 Draw the NPV Profile including all projects. Use the given range for the interest rate. 10 11 conflict? 14 15 16 17 18 19 20 21 22 23 24 Inputs Time 0 1 2 2 4 Conflict? Crossover Rate Acceptable at 5% Acceptable at 15% Conflict Range Explain Explain -$1,000,000 $125,000 $130.000 $135,000 $140,000 -$1,400,000 $170,000 $200,000 $210,000 $215.000

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