Solve this problem using Excel.

Problem Sheet 1 - Investment criteria You are looking at an investment opportunity where you have estimated the following cash flows: The required return for assets of this risk is 12% and the company has a required payback period of 2 years. Compute the following: 1) Net present value 2) Payback period 3) Discounted payback period 4) Internal rate of return Sheet 2 - Incremental-IRR Given the following two mutually exclusive projects estimated cash flows and a required return of 10%, which project should be accepted? Compute the following: 1) IRR for each project 2) Incremental IRR 3) Net present value