Question: *USING EXCEL* Explain which of the following two mutually exclusive projects you would recommend based on the information given. Project average NPV average IRR Cost

*USING EXCEL* Explain which of the following two mutually exclusive projects you would recommend based on the information given.

Project average NPV average IRR Cost
A $10mi 12% $10mi
B $7.4mi 15.10% $10mi

The NPV and IRR data above are the average -- based on three scenarios (normal case with a 70% probability, best case with a 15% probability and worst case with a probability of 15%. Assume that the firm has a capital budget of $12 million for new projects and uses a WACC of 11.5% as the discount rate in evaluating all projects.

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