Question: Please show solutions using Excel Project A and Project B are Mutually Exclusive Investments with the following cash flows t 0 1 2 project A

 Please show solutions using Excel Project A and Project B areMutually Exclusive Investments with the following cash flows t 0 1 2project A project B $ (100,000) $ (150,000) 35,000 38,000 29,000 36,000

Please show solutions using Excel

Project A and Project B are Mutually Exclusive Investments with the following cash flows t 0 1 2 project A project B $ (100,000) $ (150,000) 35,000 38,000 29,000 36,000 75,000 80,000 50,000 3 4 Return: 12.00% CALCULATE each question has 5% weight 1. NPV for each project project A NPV: project B 2. IRR for each project project A IRR: project B 3. Profitability index for each project project A project B PI: 4. Discounted payback period for project B only Discounted cash flows Cumulative discounted cash flows t 0 1 Cash flow $(150,000.00) $ 38,000.00 $ 36,000.00 $ 80,000.00 $ 50,000.00 2 3 4 project B Discounted payback period: 5. Cross-over rate Incremental cash flows t 0 1 2 3 4 Crossover rate: 6.1 Which Project(s) will you choose based on NPV, IRR and Pl rules if the required return=12% ? NPV Rule IRR rule Pl rule 6.2 Which Project(s) will you choose based on NPV, IRR and Pl rules if the required return=6% ? NPV Rule IRR rule Pl rule 6.3 Which Project(s) will you choose based on NPV, IRR and Pl rules if the required return=cross-over rate ? NPV Rule IRR rule PL rule 6.4 If NPV, IRR and/or Pl methods return conflicting results (one rule suggests project A is better the other rule suggests project B is better) your decision primarly will be based on which rule

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