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Part A You are buying a junkmobile for $2000. Dealer offers 2 options. Option 1: you pay cash and get 15% discount today. Option 2:

Part A

You are buying a junkmobile for $2000. Dealer offers 2 options. Option 1: you pay cash and get 15% discount today. Option 2: "0% financing". Specifically, you pay nothing today,a nd pay full price of $2000 in 1 year. On the other hand, a bank would loan you money for 10%. If you don't have money today, would you take dealer's 0% financing or bank loan? Please answer the question with supporting work
List price of junkmobile 2,000.00
cash payment discount 15%
Bank rate of interest 10%
Year Payment in cash Payment with credit
0 -1,700.00 0.00
1 -2,000.00

Part B

Calculate the crossover rate
Year Project A Project B Differential Cash Flow
0 -500 -500
1 167 200
2 180 250
3 160 170
4 100 25
5 100 30
corssover rate

Part 2

The following table presents the cash flows of a project
Year Project A
0 -30,000
1 35,000
2 -15,000
3 17,000
4 7,500
5 10,000
6 10,000
7 10,000
8 -50,000
9 1,000
10 1,000
Part A. Graph the NPVs of the project using different discount rates. Use this graph to approximately identify the different IRRs.
Interest rate NPV B
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%
21%
22%
23%
24%
25%
26%
27%
28%
29%
30%
31%
32%
33%
34%
35%
36%
37%
38%
39%
40%
Part B. Use Excel's IRR function with its "Guess" option to identify projects exact IRRs.
IRR1
IRR2

These answers need to be done in excel and could you please give me the equations and functions that were used in the answers thank you very much.

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