Question: Please do it on Excel and show the formulas! AFF 210 ASSIGNMENT TwoO WINTER 2019 Problem Two (20 marks the cos ocapital is 15%, which
Please do it on Excel and show the formulas!
AFF 210 ASSIGNMENT TwoO WINTER 2019 Problem Two (20 marks the cos ocapital is 15%, which project should be chosen? Ithe cost of capital is 25% which project should be chosen? Construct the NPV proliles for Project A and Project B. (Note: plot the NPVs of both projects on the same graph.) The cost of capital ranges from 0% to 30% by increments of 2%. Expected Cash Flows Expected Cash Flows Year Project A Project B -24,000 -17,000 1,500 10,500 20,500 25,000 28,000 30,000 11,500 4,500 5,000 6,500 8,000 9,000 9,500 10,000 4 a) Calculate each project's IRR and the crossover rate of the two projects b) Calculate each project's MIRR at a cost of capital of 10% c) Calculate each project's regular payback period d) Calculate each project's discounted payback period with a cost of capital of 10% e) Calculate each project's profitability index at a cost of capital of 10%. Ryerson Page 3 of:7
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