Question: help Excel Problem 3 Show All Excel Work (21 Points) You are evaluating two mutually exclusive projects, A and B. The cash flows are below.

 help Excel Problem 3 Show All Excel Work (21 Points) You

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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 if the appropriate discount rate is 5 percent? What if the rates is 12 percent? Explain your answer. (6 points) 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. Use one percent increments. (5 points) 3 Crossover Rate Acceptable at 5% Acceptable at 12% Conflict Range Explain Explain Inputs Time 0 1 2 3 4 5 6 7 8 9 10 11 12 13 A B -$2,741,250 $4,090,375 $559,000 $475,688 $507,938 $516,000 $556,850 $543,950 $810,550 $628,875 $806,250 $854,625 $591,250 $940,625 $403,125 $873,438 $201,563 $739,063 $99,438 $916,438 $67,188 $335,938 $55,165 $264,605 $46,697 $203,515 $16,936 $166,862 I RR 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 NPVA NPVB Delta Rate 0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.1 0.11 0.12 0.13 0.14 0.15 0.16 0.17 0.18 0.19 0.2 4 5 6 7 8

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