Question: Please solve it using excel. If possible please show how to also do it in excel. 3. You are considering two projects, A and B

Please solve it using excel. If possible please show how to also do it in excel.

Please solve it using excel. If possible please show how to also

3. You are considering two projects, A and B where both projects have initial costs and yearly projected cash flows as: a) Calculate NPV (A) and NPV (B) at a discount rate of 7%. Which project should be selected? Show all calculations in tabular form. (5 marks) b) Calculate NPV (A) and NPV (B) at a discount rate of 16%. Which project should be selected? Show all calculations in tabular form. (5 marks) c) Compute the IRR for each project based on time period shown. Show all calculations in tabular form. (4 marks) d) Graph the NPV profiles for both projects on a single chart (over a range of discount rates) and determine the crossover point. (6 marks) e) Over what range of discount rates would you choose Project B? Project A? At what discount rate would you be indifferent between these two Projects (crossover rate)? When are neither projects worth doing

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