Question: PLEASE SOLVE USING EXCEL AND SHOW ALL WORK/FORMULAS 3. Consider the following mutually exclusive projects: Year Project X Project W -$8.000.000 -$8,000,000 $4,000,000 $1,000,000 $4,000,000

PLEASE SOLVE USING EXCEL AND SHOW ALL WORK/FORMULAS 3. Consider the

PLEASE SOLVE USING EXCEL AND SHOW ALL WORK/FORMULAS

3. Consider the following mutually exclusive projects: Year Project X Project W -$8.000.000 -$8,000,000 $4,000,000 $1,000,000 $4,000,000 $2,000,000 $4.000.000 $3,000,000 $3.000.000 $4,000,000 $2,000,000 $5,000,000 The cost of capital is 22% a. Use an Excel spreadsheet to construct the NPV profile for this project. b. Calculate the crossover rate. c. Calculate the NPV for both projects. d. Calculate the IRR for both projects. e. Which project should be accepted? Why

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