Excel Activity: Capital Budgeting Tools Start with the partial model in the file Ch12 P25 Build a Model.x/sx. Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows: The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Download spreadsheet Ch12P25 Build a Model-76b09e.xlsx a. If each project's cost of capital is 8%, which project should be selected? Round your answers to the nearest cent. NPV (Project A): \$ NPV (Project B): \$ ] should be selected. If the cost of capital is 15%, what project is the proper choice? Round your answers to the nearest cent. NPV (Project A): \$ NPV (Project B): \$ | should be selected. b. Construct NPV profiles for Projects A and B. Choose the correct graph. The correct graph is c. What is each project's IRR? (Hint: Using the Excel IRR function, set the guess parameter to be 10%.) Round your answers to two decimal places. IRR (Project A) IRR (Project B) d. What is the crossover rate, and what is its significance? (Hint: Using the Excel IRR function, set the guess parameter b. Construct NPV profiles for Projects A and B. Choose the correct graph. A 3. C The correct graph is c. What is each project's IRR? (Hint: Using the Excel IRR function, set the guess parameter to be 10%.) Round your answers to two decimal places. IRR (Project A): % IRR (Project B): d. What is the crossover rate, and what is its significance? (Hint: Using the Excel IRR function, set the guess parameter to be 10%.) Round your answer for the crossover rate to two decimal places and for the NPV to the nearest cent The crossover rate is 3. The crossover rate represents the cost of capital at which the two projects have the NPV of $ e. What is each project's MIRR at a cost of capital of 8% ? At r=15% ? Round your answers to two decimal places f. What is the regular payback period for these two projects? Round your answers to two decimal places. Regular payback period (Project A): years Regular payback period (Project B): years g. At a cost of capital of 8%, what is the discounted payback period for these two projects? Round your answers to two decimal places. Discounted payback period (Project A): years Discounted payback period (Project B): years h. What is the profitability index for each project if the cost of capital is 8% ? Round your answers to three decimal places. Profitability index (Project A): Profitability index (Project B): y: Capital Budgeting Tools loose the correct graph. B. I D. el IRR function, set the guess parameter to be 10%.) Round your ficance? (Hint: Using the Excel IRR function, set the guess parameter er rate to two decimal places and for the NPV to the nearest cent crossover rate represents the cost of capital at which the two of 8% ? At r=15% ? Round your answers to two decimal places. o projects? Round your answers to two decimal places. years years ed payback period for these two projects? Round your answers to two years years the cost of capital is 8% ? Round your answers to three decimal Canital Budcuetina Tools a Findinn earh nrniert'c NPV at twen different rnete of ranital WACC 1 WACC2 8% NPV at WACC NPV at WACC2 Formulas IRR \#N/A Droinet-1 HNi d. Findina the crossover rate (Usina the Excel IRR function. set the auess narameter to be 10%.) Proiert CF= Crnssnver rate NPV of Prniest A at the crnssnver rate NPV of Prniect B at the crossnver rate. e. Findina each nroiect's MIRR at two different costs of canital WACC1 8% WACC2 \#N/A \#N/A \#N/A \#N/A \#N/A \#N/A \#N/A \#N/A \#N/A \#N/A \#N/A MIRR at WACC MIRR at WACC2 f. Findina the recular navhack neriod for these two nroiects Priert A Intermediate Renular navhac:k nerind (vears) HN/A Enter text or formula here