Estimated expenditures and cash flows for the two projects are shown below.

Year Project A Project B

0 (350,000) (3,500,000)

1 150,000 150,000

2 150,000 150,000

3 100,000 750,000

4 75,000 1,500,000

5 75,000 2,000,000

1. Using Excel, Calculate NPV and Profitability Index for Projects A and B at the following capital costs: 5%, 10%.

2. Using Excel, Calculate IRR for Projects A and B