Question: PLEASE SOLVE USING EXCEL AND SHOW ALL WORK/FORMULAS 1. Consider the net cash flows for Projects A and B below: Year Project A Project B

PLEASE SOLVE USING EXCEL AND SHOW ALL WORK/FORMULAS 1. Consider the

PLEASE SOLVE USING EXCEL AND SHOW ALL WORK/FORMULAS

1. Consider the net cash flows for Projects A and B below: Year Project A Project B -$50,000 - $25,000 $20,000 $10,000 $20,000 $10,000 $15,000 $8,000 $15,000 $8,000 $10,000 $7,000 The cost of capital is 12 percent. a. What is the payback period for both projects? b. What is the discounted payback period for both projects? c. What is the NPV for both projects? Are both projects acceptable based on NPV? d. What is the IRR for both projects? Are both projects acceptable based on IRR? e. What is the MIRR for both projects? Are both projects acceptable based on MIRR? f. What is the Profitability Index (PI)for both projects? Are both projects acceptable based on PI? g. What is the crossover rate? h. If the projects are mutually exclusive, which project should be accepted? Why

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