Question: Please show this in a excel file format with the calculations the following table shows the cash flows for two mutually exclusive capital budgeting projects.
Please show this in a excel file format with the calculations
the following table shows the cash flows for two mutually exclusive capital budgeting projects. The required rate if return for both projects is 10%
Year Project X cash flow Project Y cash flow
| 0 | -120000 | -120000 |
| 1 | 100000 | 20000 |
| 2 | 40000 | 50000 |
| 3 | 10000 | 100000 |
a) Compute the net present value for both projects
b) Compare the internal rate of retune for each project
c) Compute the modified internal rate of return for both projects
d) Which project should be accepted? What causes NPV and IRR to rank the projects differently?
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