Please answer the questions in Excel format and explain the solution

Chapter 9 Capital Budegting 1. The RMT Company is considering making one or both of the following investments. Its cost of capital is 12 percent. AED million Project Year o Year 1 year 2 year3 year4 A -70 18 28 36 46 B -90 45 0 50 58 A. What is the NPV of project A? Of project B? B. Which of the two projects should be chosen based on the payback period? C. Which of the two projects should be chosen based on the discounted payback period? D. Which of the two projects should be chosen based on the profitability index method? E. Which of the two projects should be chosen based on the IRR method? 2.You buy a new piece of equipment for $13,692., and you receive a cash inflow of $3,000 per year for 7 years and the cost of capital is 12 percent. Using the internal rate of return method, evaluate this project and indicate whether it should be undertaken