Please answer question 3

Question 1: An investor has two investment alternatives, project A and project B, that are mutually exclusive. Other investment opportunities also exist at 10% minimum rate of return. Cash flow for project A and B are given as: Project A: C-200,000C-100,0001-80,000|1=80,000 1=80,000180,0001-60,000 1-60,000 -60,000 1 2 3 4 5 6 7 8 L=S140,000 Year Project B: 20,000 5 C-60,000 -25,000 -25,000 -25,000 1-25,000 Year 1 2 3 4 C: Cost, 1: Income, L: Salvage Value -20,000 -20,0001-20,000 6 7 8 L-$30,000 Using NPV and ROR analysis conclude which project is better to invest. Your answer should include incremental cash flow and incremental analysis for both NPV and ROR. Question 2 (25 points): Given cash flows of projects A and B with unequal life below, which project is a better investment on the basis of NPV and IRR analysis assuming a minimum rate of return of 12%? It is recommended that one apply incremental analysis techniques. Project A: C=-75,000 0 1=30,000 1 1=25,000 2 1=40,000 3 1=25000 4 1=30,000 5 L=$65,000 Year Project B: | C=-200,000 I=90,000 1=80,000 I=90,000 | 1=95,000 om | 300 | om Year 13.00 -525,000 C: Cost, I: Income, L: Salvage Value Page 1 of 2 Question 3 (25 points): Same as question 1, but project A is being pushed back two years. Re-do your analysis