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Images of your spreadsheet would be greatly appreciated so I can see the work involved. There are two mutually exclusive projects A and B. Both

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Images of your spreadsheet would be greatly appreciated so I can see the work involved.

There are two mutually exclusive projects A and B. Both projects require an investment of $10 million but the timing is different for the rest of the expected net cash flows. For project A Period 0 -$10.0 m For project B - $10.0 million Period 1= 6.5 3.5 m Period 2 3.0 3.5 Period 3 3.0 3.5 Period 4 1.5 3.5 Total Inflow $14.0m $14.0m Prepare 3 possible scenarios for each project. Use the 5% discount rate (WACC) for a forecast if these are low risk projects, 10% if we think they have a normal amount of risk and 15% if we decide that these are high risk projects. 1-Show the NPV's, the IRR's and the Payback Periods for each project on your spreadsheet 2 Assume these projects are mutually exclusive. Which ones would you choos... a) Using a 5% discount rate? b) Using a 10% discount rate? c) Using a 15% discount rate? 3 Assume the projects are independent, which ones would you choose at each discount rate (in each scenario?)

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