Hello,

How do I solve these types of questions using Excel? Thank you for any help that you can provide.

1. You are analyzing the following two mutually exclusive projects and have developed the following information. What is the crossover rate? Year 0 1 2 3 Project A Project B Cash Flow Cash Flow -$80,300 -$77,900 $25,500 $25,000 $14,000 $13,000 $47,800 $46,000 2. A proposed project lasts 3 years and has an initial investment of $500,000. The after tax cash flows are estimated at $120,000 for year 1, $240,000 for year 2, and $240,000 for year 3. The firm has a target debt/equity ratio of 0.6. The firm's cost of equity is 15% and its cost of debt is 8%. The tax rate is 35%. What is the NPV of this project? (hint: remember that the D/E is saying that debt is 60% of equity. In other words, you need to find D/A and E/A for the appropriate weights.)