Question: please show how to do in excel as well Question 8 2.5 pts ABC Inc. is considering two mutually exclusive investment projects, each of which
Question 8 2.5 pts ABC Inc. is considering two mutually exclusive investment projects, each of which requires an up-front expenditure of $2,408,000.00. You estimate that the investments will produce the following net cash flows: Year Project A Project B 1 $4,870,000 $19,900,000 2 10,200,000 10,960,000 20,920,000 5,590,000 W N 3 Which project should ABC Inc. choose, assuming the cost of capital is 11.25%? Choose Project B becasue NPVE > NPVA by $2.990,410.07. Choose Project A becasue NPVA > NPV by $2,810,985.47. Choose Project A becasue NPVA > NPVg By $3,169,834.68. Choose Project B becasue NPVg > NPVA by $3,229,642.88. O Choose Project A becasue NPVA > NPV8 by $2,661,464.97
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