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Can you please use excel to demonstrate the formulas. Valley Products, Inc. is considering two independent investments having the following cash flow streams: Years Project

Can you please use excel to demonstrate the formulas.

Valley Products, Inc. is considering two independent investments having the following cash flow streams:

Years Project A Project B
0 -50000 -40000
1 20000 20000
2 20000 10000
3 10000 5000
4 5000 5000
5 5000 40000

Valley uses a combination of the net present value approach and the payback approach to evaluate investment alternatives. It requires that all projects have a positive net present value when cash flows are discounted at 10 percent and that allprojects have a payback no longer than three years. Which project or projects should the firm accept? Why?

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