Question: Show work in excel with formulas please Compare the following projects using the NPV method and the EAA method if the cost of capital is
Show work in excel with formulas please
Compare the following projects using the NPV method and the EAA method if the cost of capital is 18%.
| Year | Project A | Project B |
| 0 | ($500,000) | ($500,000) |
| 1 | $175,000 | $155,000 |
| 2 | $225,000 | $155,000 |
| 3 | $300,000 | $155,000 |
| 4 | $200,000 | $155,000 |
| 5 | $155,000 | |
| 6 | $155,000 | |
| 7 | $155,000 | |
| 8 | $155,000 |
Use the information given in problem 5 to replicate Project A and compute the NPV of the new project that lasts for 8 years.
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