Problem Five (20 marks) show excel formulas !

You have been asked to analyze two mutually exclusive projects.

		Expected Cash Flows	Expected Cash Flows
Year		Project A	Project B
	0	-191,000	-48,500
	1	-101,000	14,500
	2	-24,500	16,000
	3	41,500	18,550
	4	100,500	22,000
	5	132,500	23,500
	6	177,000	25,500
	7	212,000	28,000
	8	275,000	35,000

1. Construct the NPV profiles for Project A and Project B. (Note: plot the NPVs of both projects on the same graph.) The cost of capital ranges from 0% to 30% by increments of 2%.
2. Calculate each projects IRR
3. Calculate the crossover rate of the two projects.
4. Calculate each projects MIRR at a cost of capital of 14% and reinvestment rate of 10%.
5. Calculate each projects regular payback period.
6. Calculate each projects discounted payback period with a cost of capital of 14%.
7. Calculate each projects profitability index at a cost of capital of 14%.
8. Calculate each projects NPV at a required rate of return of 14%.
9. Calculate each projects NPV at a required rate of return of 28%.