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answer using excel If the cost of capital is 12%, which project should be chosen? If the cost of capital is 18% which project should

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If the cost of capital is 12%, which project should be chosen? If the cost of capital is 18% which project should be chosen? a) To determine the answer to this above questions you are to calculate the NPV of each project using a required rate of return of 12% and then a required rate of return of 18%. Then construct the NPV profiles for Project A and Project B. (Note: plot the NPVs of both projects on the same graph.) The cost of capital ranges from 0% to 30% by increments of 2%. Expected Cash Flows Project A -34.000 -27,000 pe la 11,500 20,500 30,500 35,000 38,000 40,000 Expected Cash Flows Project B -31,500 14,500 15,000 16,500 18,000 19,000 19,500 20,000 b) Calculate each project's IRR and the crossover rate of the two projects. c) Calculate each project's MIRR at a reinvestment rate of 10% and a cost of capital of 18%. d) Calculate each project's profitability index at a cost of capital of 12% e) Calculate each project's regular payback period. f) Calculate each project's discounted payback period with a cost of capital of 12%. Note: All of Calculations should be rounded to one decimal place. Therefore, the IRR should be shown as 10.5% not 10.48378332%

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