Question: Can you please use excel formulas to solve it Problem Three (20 marks) If the cost of capital is 12%, which project should be chosen?

 Can you please use excel formulas to solve it Problem Three

Can you please use excel formulas to solve it

Problem Three (20 marks) If the cost of capital is 12%, which project should be chosen? If the cost of capital is 27% which project should be chosen? Construct the NPV profiles for Project A and Project B. (Note: plot the NPVs of both projects on the same graph.) The cost of capital ranges from 0% to 30% by increments of 2%. Expected Cash Flows Project A 0 1 -72.000 11 -51.000 2 4.500 3 30.500 60,500 5 75,000 61 88.000 71 20.000 Expected Cash Flows Proiect B -23.500 8.500 10.000 12,500 16.000 18,000 19.500 20.000 a) Calculate each project's IRR and the crossover rate of the two projects. b) Calculate each project's MIRR at a cost of capital of 12% c) Calculate each project's regular payback period. d) Calculate each project's discounted payback period with a cost of capital of 12% e) Calculate each project's profitability index at a cost of capital of 12%

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