11. Consider the cash flows for two proposed capital budgeting projects given below. The cost of capital is 12% for both projects.

Year 0 1 2 3 4

Project A -20,000 8,000 8,000 6,000 8,000

Project B -9,000 4,000 5,000 4,000 3,000

• Calculate the NPVs for Project A and B
• Calculate the IRRs for Project A and B
• Calculate the Paybacks for Project A and B
• Calculate the crossover rate.
• When the cost of capital is 7%, which project should you choose?
• When the cost of capital is 15%, which project should you choose?

I will rate answer if:

1. All calculations steps are shown

2. Answers are given using Excel (preferably)

3. NO handwritten answers please!