Question: Excel Problem 3 Show All Excel Work (21 points) You are evaluating two mutually exclusive projects, A and B. The cash flows are below What
Excel Problem 3 Show All Excel Work (21 points) You are evaluating two mutually exclusive projects, A and B. The cash flows are below What is the IRR for each project? (2 points) What is the crossover rate for these projects? (4 points) Which project is acceptable the appropriate discount rate is 5 percent? What if the ratesi 12 percent! Explain your answer. (6 points) 0 Over what range of rates is there a conflict? (4 points) Draw the NPV Profile including all projects. Use an appropriate range for the interest rate 4 Use one percent increments. (5 points) 15 56 17 Inputs Time 0 1 2 3 Crossover Rate Acceptable at 5% Acceptable at 12% Conflict Range Explain Explain 4 A -S2,193,000 $1,272,300 $430,000 $380.550 $376,250 $430,000 $397,750 $473,000 $559,000 $559,000 $645,000 5683,700 S473,000 $752,500 S322,500 $698,750 $161,250 5591,250 $79,550 $733,150 553,250 $268,750 5 6 7 8 9 10 18 19 20 21 22 23 24 . 25 26 27 20 20 30 31 22 33 34 35 36 37 38 39 40 43 42 41 44 45 46 RR NPVA NPVB Rate 0 0.01 0.02 0.0 0.04 0.05 0.00 00 00 0.00 0.1 0.11 0.12 0.13 0.14 0.15 0.16 0.17 0.1 010 40 -19 50 51
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