Question: using spreat sheet Using spread sheet, answer the following questions. Problem 1 XYZ Inc. is considering two projects A and B. The cash flows of
Using spread sheet, answer the following questions. Problem 1 XYZ Inc. is considering two projects A and B. The cash flows of the projects are as follows: Project A $5,300 $2,000 $2,800 $1,600 Project B -$2,900 $1,100 $1,800 $1,200 Year 0 1 2 Assume that the discount rate is 9.0% 1. Find NPV of both projects A and B. Which project will you choose if they are mutually exclusive (if you choose one, you cannot choose other)? What if the projects are independent (if both are good projects, you can choose both) 2. What are Payback Period and Discounted Payback Period for each of the projects A and B? 3. Find Internal Rate of Return (IRR) for both projects A and B? Which project(s) will you choose based on IRR (assume projects are independent)? 4. Find Profitability Index of each of the projects A and B? Which project(s) will you choose based on PI (assume projects are independent)
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