Delete Paste Conditional Format as Cell Formatting Table Styles Styles Format Sort & Filter Fing Sele Clipboard Font Alignment Number Cells Editing H14 - 1 X fx 1 Excel Assignment 7 - Capital Investing In this activity, you will evaluate two projects based on several metrics and determine the best project. Complete all higlighted cells, then input your answers into the learn system. COWN HINT: Consider Salvage value when calculating depreciation. 9 Your manager is choosing between two mutually exclusive projects. Complete the analysis below to help with this decision. The project information is as follows: 12 Annual Revenues 13 Annual Operating Costs 14 Initial Investment 15 Salvage Value 16 Project Life Project A 985,000 360,000 1,800,000 Project B 725,000 400,000 800,000 5 17 18 The cost of capital for your company is 8 percent. 10 Sheet1 + Ready Type here to search | 9 or your company is 8 percent below and determine which project should be accepted. Fill in all yellow shaded cells Calculate the Payback period for each Project Project A Payback pened Payback period Investment 1.800.000 Projects Payback period Payback period / - Annual net cash flow $ 525 000 Investment 800.000 Annual net cash flow $ 25.000 2.88 years $ - 200 years Compute the ARR for sach Project Project A Project Payback period Payback period Payback period Payback period Average Income - - - Calculate the Net Present Value for each project Project ype here to search O BI De 9 SAMSUNG M PO Project A Project B Present Year Cash Flow Discount Factor Value Year Cash Flow 1.5 1-5 NPV Calculate the Internal Rate of Return for each project: Project A Investment Discount factor Discount factor Project Discount factor Discount factor Using the PV of annuity table, and the appropriate time period, look up the factor above to find the IRR. Using the PV of annuity table, and the appropriate time period, look up the factor above to find the IRR. Based on your analysis, which project should be selected and why? neet1 Type here to search Ofe 9