Question: please solve it on an excel sheet and try to solve with using excel formulas when appropriate and also use FORMULATEXT to show the formula
please solve it on an excel sheet and try to solve with using excel formulas when appropriate and also use FORMULATEXT to show the formula used in the excel sheet.
solve both question to get like
1) Consider the following cash flows for one-year Project A and B, with required rates of return of 10%. You have limited capital and can invest in one but one project. Which one?
Initial Outlay: A = $200; B = $1,500
Inflow: A = $300; B = $1,900
2) Example: Consider two projects, A and B, with initial outlay of $1,000, cost of capital of 10%, and following cash flows in years 1, 2, and 3:
A: $100 $200 $2,000
B: $650 $650 $650
Which project should you choose if they are mutually exclusive? Independent? Crossover rate?
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