Suppose your company is considering two projects $($Project A & Project B$)$

Project A: This project is the introduction of a new product. It will require an upfront investment of $10$ million dollars. At the end of year $1,$ the project will generate $2\mathrm{.}5$ million dollars in FCFs$.$ At the end of year $2,$ the project will generate $2\mathrm{.}6$ million dollars in FCFs$.$ At the end of year $3,$ the project will generate $2\mathrm{.}7$ million dollars in FCFs$.$ At the end of year $4,$ the project will generate $2\mathrm{.}8$ million dollars in FCFs$.$ At the end of year $5,$ the project will generate $3\mathrm{.}0$ million dollars in FCFs$.$ The project will generate no more FCFs after year $5.$

Project B: This is an expansion of the company$$s main office. This project will require an upfront investment of $4\mathrm{.}5$ million dollars. In year $1,$ the expansion will generate $0\mathrm{.}5$ million dollars in$.$ After the first year, FCFs will grow by $2\%$ each year forever.

Calculate the IRR of each project.

Calculate the NPV of each project.

Calculate the Payback Period of each project.

$($If possible can you solve it by using excel and showing the work behind it$?)$