Question: Can someone help me answer Chapter 11 problem 1 in Financial Analysis with Microsoft Excel 7th edition? You are considering an investment in two projects,

Can someone help me answer Chapter 11 problem 1 in Financial Analysis with Microsoft Excel 7th edition?

You are considering an investment in two projects, A and B. Both projects will cost $100,000 and the project cash flows are as follows:

Year Project A Project B
1 6,250.00 45,000.00
2 18,750.00 33,750.00
3 35,000.00 25,000.00
4 43,750.00 18,750.00
5 50,000.00 12,500.00

a. assume the the WACC is 8%, calculate the payback period, discounted payback period, NPV, PI, IRR, and MIRR. If the projects are mutually exclusive, which should be selected?

b. create an NPV profile chart for projects A and B. What is the exact crossover rate for these two projects?

Can you explain how you found these answers in excel.

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