Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows:

Expected Net Cash Flows

Time

Project A

Project B

0

($375)

($575)

1

($300)

$190

2

($200)

$190

3

($100)

$190

4

$600

$190

5

$600

$190

6

$926

$190

7

($200)

$0

a. If each project's cost of capital is 11%, which project should be selected? If the cost of capital is 17%, what project is the proper choice?

@ 11% cost of capital

@ 17% cost of capital

Use Excel's NPV function as explained in this chapter's Tool Kit. Note that the range does not include the costs, which are added separately.

WACC =

11%

WACC =

17%

NPV _A =

$269.34

NPV _A =

$48.26

NPV _B =

$228.80

NPV _B =

$106.95

b. Construct NPV profiles for Projects A and B.
Before we can graph the NPV profiles for these projects, we must create a data table of project NPVs relative to differing costs of capital.
	Project A	Project B
	$269.34	$228.80
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
24%
26%
28%
30%

HOW DO I DO PART B IN EXCEL????