Question: Please solve by hand and not through excel Question 1 (25 points): An investor has two investment alternatives, Project A and Project B, that are

Please solve by hand and not through excelPlease solve by hand and not through excel Question 1 (25 points):

Question 1 (25 points): An investor has two investment alternatives, Project A and Project B, that are mutually exclusive. Other investment opportunities also exist at 10% minimum rate of return. Cash flows for Project A and B are as follows. Which project is a better investment on the basis of NPV and IRR analysis? It is recommended that one apply incremental analysis techniques. Project A: C=-5.000 C=-3,500 500 C=-2,500 | I=3,000 I=3,000 I=3,000 I=2,500 I=2,500 1=2,500 I=3,000 1 2 3 4 5 6 7 8 L=$8,500 Year 0 Project B: I=4.500 L=$11,000 | C=-15,000 C=-4,000 I=4,250 1=4,000 1=3,750 1=3,500 1=3,250 1=3,000 1=1,750 0 | 1 | 2 | 3 | 4 | 5 | 6 8 C: Cost, I: Income, L: Salvage Value Year

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