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Need solution and the explanation to draw graph in excel format You are a financial analyst for the Waffle Company. The director of capital budgeting

Need solution and the explanation to draw graph in excel format

You are a financial analyst for the Waffle Company. The director of capital budgeting has asked you to analyze two proposed capital investments, Projects A and B. Each project has a cost of $50,000, and the cost of capital for each is 10%.

The projects expected net cash flows are as follows:

Expected Net Cash Flows

Year

Project A

Project B

0

($50,000)

($50,000)

1

25,000

15,000

2

20,000

15,000

3

10,000

15,000

4

5,000

15,000

5

5,000

15,000

How might a change in the cost of capital produce a conflict between the NPV and IRR rankings of these two projects? Would this conflict exist if r were 6%? (Hint: Plot the NPV profiles.)

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