Question: excel will do For the following two projects, determine the 1. Payback Period 2. Discounted Payback 3. Net Present Value 4. Profitability Index (Benefit-Cost Ratio)

 excel will do For the following two projects, determine the 1.
Payback Period 2. Discounted Payback 3. Net Present Value 4. Profitability Index
excel will do

For the following two projects, determine the 1. Payback Period 2. Discounted Payback 3. Net Present Value 4. Profitability Index (Benefit-Cost Ratio) 5. Internal Rate of Return 6. Modified Internal Rate of Return Project A Project B Year Cash Flow Cash Flow Net Income Net Income 0 1 2 3 4 Risk Index 5,000 5,000 5000 5,000 (15,000) 6,000 6,000 6,000 6,000 3,000 5,000 7,000 11,000 (19,000) 4,000 6,000 8,000 12,000 1.80 .60 The firm's cost of capital k, is 15% and the risk free rate Rr is 10%. The firm assesses risk and assigns a risk index to determine a risk adjusted discount rate. An index of 1.0 would be assigned to an average risk project. To determine risk adjusted rates the firm uses the following equation: Risk Adjusted Rate (RADR) = Rp + [Risk Index (k- Rr) Task: Rank the projects in accordance with each method of analysis

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