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

Please answer sections a, b, and c by showing Excel syntax used; no hand-written answers

Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows Expected Net Cash Flows Project A Project B Time ($375) ($575) ($300) $190 ($200) $190 ($100) $190 $600 $600 $926 ($200)0 $190 $190 $190 6 a. lf each project's cost of capital is 12%, which project should be selected? If the cost of capital is 18%, what project is the proper choice? @ 12% cost of capital WACC = @ 18% cost of capital Use Excel's NPV function as explained in 12% 18% this chapter's Tool Kit. Note that the range does not include the costs, which NPV A = are added separately NPV B = At a cost of capital of 12%, Project A should be selected. However, if the cost of capital rises to 18%, then the choice is reversed, and Project B should be accepted 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 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% A% 26% 28% 30% c. What is each project's IRR? We find the internal rate of return with Excel's IRR function: Note in the graph above that the X-axis intercepts are equal to the two projects' IRRs IRR A =