Before whoever decides to answer the following problems, please DO NOT use excel. I have posted this question already, and the expert answered using excel to solve this problem. I am not good with excel at all so I did not understand what was given. Would rather have the problem worked out showing the formula and work broken down and written out. Thank you in advance.

You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows:

YEAR --- PROJECT A CASH FLOW --- PROJECT B CASH FLOW 0 ------------- -100,000 --------------- -100,000 1 --------------- 33,000 --------------- 0 2 --------------- 33,000 --------------- 0 3 --------------- 33,000 --------------- 0 4 --------------- 33,000 --------------- 0 5 --------------- 33,000 --------------- 210,000

If the appropriate discount rate on these projects is 12 percent, which would be chosen and why?

1. What is the NPV of project A?

____(round to the nearest cent.)

2. What is the NPV of project B?

____(round to the nearest cent.)