Question: Could you please show the formulas in Excel. 7. Two mutually exclusive investment projects have the following forecasted cash flows: Years A B 0 ($20,000)

Could you please show the formulas in Excel.

7. Two mutually exclusive investment projects have the following forecasted cash flows:

Years A B
0 ($20,000) ($20,000)
1 10,000 0
2 10,000 0
3 10,000 0
4 10,000 $60,000

a. Compute the internal rate of return for each project.

b. Compute the net present value for each project if the firm has a 10 percent cost of capital.

c. Which project should be adopted? Why?

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