Question: PLEASE SHOW EXCEL FORMULA & STEPS TO SOLVE PROBLEM Given the information in the table below, calculate the NPV and IRR for projects A and
PLEASE SHOW EXCEL FORMULA & STEPS TO SOLVE PROBLEM
| Given the information in the table below, calculate the NPV and IRR for projects A and B. Assuming these are mutually exclusive projects, which project should the firm choose? | ||||
| Project A | Project B | |||
| Year | Cash Flow | Cash Flow | ||
| 0 | ($105.00) | ($70.00) | ||
| 1 | $55.00 | $30.00 | ||
| 2 | $45.00 | $30.00 | ||
| 3 | $35.00 | $30.00 | ||
| 4 | $25.00 | $30.00 | ||
| Discount Rate | 13.50% | 14.50% | ||
| Use the scratchpad to show your work in Excel. | ||||
| Type your numercial answers into the yellow cells below. | ||||
| Answers should be to two decimal places, e.g. 1.23% or $123.45. | ||||
| NPV A | ||||
| IRR A | ||||
| NPV B | ||||
| IRR B | ||||
| Choose A or B? | ||||
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