Question: please use excel!!! The following cash flows are given for the two mutually exclusive projects A and B. The project A requires an initial investment
please use excel!!!
The following cash flows are given for the two mutually exclusive projects A and B. The project A requires an initial investment of $20,000 in time 'O' and project B needs an initial investment of $22,000 in time 'O'. Year 1 Project A $5,500 Project B $9,000 2 6,000 8,000 3 7,000 6,000 4 7,500 5,500 5 9,000 4,500 (a) Calculate the NPV (Net Present Value) for each project using a discount rate of 14%. (b) State your accept/reject decision (Note: For mutually exclusive projects; use only NPV method for decision making) (c) What would be your decision if the projects were independent projects? (d) Calculate the IRR for each project
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