Excel Explanation

Beta Electric Power Co. (BEP) asks you to evaluate the projected development of a power plant. There are six alternatives: coal, gas, hydro, nuclear, solar, and wind. The after-tax net cash flows (i.e., free cash flow) for each plant project are estimated respectively as shown in the end of this problem case. BEP has been experienced in operating all those six types of power plants, so the risk for each alternative is about the same as the firm's average risk level. BEP's average WACC is 7.50% annually. (All FCFs and WACC amounts here are provided in real terms, already deflated.) BEP has a time constraint policy that requires full initial investment paid back within 5 years, and all six power projects are considered "repeatable (i.e., renewable)" instead of "one-time deal". Questions: A. If these six power plant projects are independent (for example, to be built across different regions), which one(s) of them shall BEP undertake? (Apply all appropriate major decision rules we have practiced in this course.) B. If these six power plant projects are mutually exclusive (for example, to be built for one single region only), which one(s) of them shall BEP undertake? (Apply all appropriate major decision rules we have practiced in this course.)