How would you calculate profitability index and equivalent annual annuity in excel based on the info provided in spreadsheet?

The Investment Detective The essence of capital budgeting and nesoucce alloeation is a search fot good investments in which to place the finm's capital. The process can be simple when viewed in pucely mechanical terms, but a number of subtle issues can obsence the best investment choices. The capital-budgeting analyst, thecefore, is necessacily a detective who must winnow bad evidence fcom good. Mnch of the challenge is in knowing what quantitative analysis to genecate in the fixst place. Snppdse you ace a new capital-budgeting analyst for a company considexing investments in the eight projects listed in Exhibit 1. The CFO of your company has asked you to rank the projects and secommend the "fouc best" that the company should accept In this assignment, only the quantitative considerations ace kelevant. No other peoject characteristies ace desiding fictocs in the seletions exegpt that manwgensent baes detecninsed that pcoicts 7 and 8 axe ausally exclusive All the peojects zequire the same initial investment. $2 million. Moreover, all are believed to be of the same ask class. The fium's weighted aveage cost of capital has nevec been estimated In the past, analysts have simply assumed that 10% was an appropriate dscont cate (althongh certan ofices of the company have recently assected that the discount cate shonld be much highe) To stimulate your analysis, consides the following gnestions Can yon cank the peojects simply by inspecting the cash flows? 2. What eatesia might yos use to ank the peojests, Which gpantitative canking methods ace better? Why? 3. What is tdhe anking yon fonnd by msung pantitateve methods? Does this canking differ fcom the ranking obtained by simple appection of the eash tlows? What kinds of sesd investment peojects have cash aows sinilae to those in Exhbit 1P