Please answer the following question (including excel formulas):

Chapter 14-The Basics of Capital PROBLEM 3 Capitol Health Plans, Inc. is evaluating two different methods for providing home health services to its members. Both methods involve contracting out for services, and the health outcomes and revenues are od chosen. Therefore, the incremental cash fn Here are the projected flows: Year MethodA Method B 0 (S300,000(S120,000) 0)($96,000) 2(S66,000 (96,000) 3(S66,000 (96,000) 4(S66,000)($96,000) a. What is each alternative's IRR? IRR = b. If the cost of capital for both methods is 9 percent, which method should be chosen? Why? MethodA Method B IRR NPV IRR NPV