Download the Calculated Questions file, complete it within the Excel template, and then reupload. Students should attempt BOTH questions (10% total or 5% each). Question 1: COMPARING TWO PROJECTS UNSINGINET PRESENT VALUE INEVI Year o Year 1 Year 2 Year 3 Year 5 Year 6 Total Prie Interest rate Required 15% Outflow Inflow Net inflow NPV $54,234 90 15700,000) $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 15700,000) $225,000 1,125,000.00 $225,000 $425,000 15N Proiecte Required Outflow Inflow Net Inflow NPY (5400,000) $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 (5400,000) 5550,000 $150,000 2041 Questions: Based on the information above, identify which project (Project A or B) should be accepted? Explain why. By changing the figures in the excel template (above), assume the Interest rate for Project A fell to 13%, and Cash outflow (The initial investment) was $950,000, Cash Inllows was $350,000 per annum for the 6 years, and Net Inflows was also $250,000. For Project B, assume interest rate also fell to 13% but Cash outflow, Inflow and Net Inflows remain the same. What is the new NPV for each of the project? Would you receommend that any of these Answer 20 21 22 Question 2: Comracine Two Brolet indthe Ravak Mathed Project A 24 25 26 27 28 29 30 31 $700,000 $225,000 Projects $400,000 $110,000 Investment Annual savings Payback period 3.1 years 3.6 years Rate of return 32.1% 27.5% 33 34 35 36 37 36 39 40 Base on the Payback calculations above, which project would you accept? Why. Assume for project Athe investment was $980,000 and annual savings was 5210,000 and for Project Investment was $850,000 and Annual Questions savings was $300,000. Which project would you recommend after the changes? Why? How do the changes in Investments and Annual Savings affect the Rate of Returns for each project? What does the changes in Rate of Bramantha