Question: PLEASE WORK THE FOLLOWING ON EXCEL AND SHOW WORK! You are considering the following three projects. A & B are mutually exclusive while C is
PLEASE WORK THE FOLLOWING ON EXCEL AND SHOW WORK!
You are considering the following three projects. A & B are mutually exclusive while C is independent.

Following are their expected cash flows year project A Project B Project C 60,000.00 40,000.00 20,000.00 40,000.00 35,000.00 30,000.00 2,000.00 82,000.00 40,000.00 60,000.00 20,000.0O 20,000.0O 10,000.00 40,000.00 Assuming no capitol rationing a required rate of return (cost of capital) of 12% for all three projects. 1) Calculate NPV for each project. 2) Calculate IRR(s) for cach project. 3) Calculate Pl for each project. 4) Using cost of capital, as a financing and reinvestment rate, calculate MIRR for each project. 5) If A&B profiles cross, calculate the exact crossover point between project A & B 6) Which of the three projects, if any, should be accepted and why
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
