Question: **PLEASE USE EXCEL TO SOLVE AND SHOW EQUATIONS** (12-7) NPV Your division is considering two investment projects, each of which requires an up-front expenditure of

**PLEASE USE EXCEL TO SOLVE AND SHOW EQUATIONS** (12-7) NPV Your

**PLEASE USE EXCEL TO SOLVE AND SHOW EQUATIONS**

(12-7) NPV Your division is considering two investment projects, each of which requires an up-front expenditure of $15 million. You estimate that the investments will produce the following net cash flows: Year Project A Project B 1 $5,000,000 $20,000,000 2 10,000,000 10,000,000 3 20,000,000 6,000,000 a. What are the two projects' net present values, assuming the cost of capital is 5%? 10%? 15%? ANSWER b. What are the two projects' IRRs at these same costs of capital

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