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Please complete in excel and show all the steps and bold the final answer. Your firm is trying to determine which project it should invest
Please complete in excel and show all the steps and bold the final answer.
Your firm is trying to determine which project it should invest in. The projects are mutually exclusive. The cost of capital is 12%. Year Expected Cash Flows Expected Cash Flows Project A Project B 0 -34,000 -31,500 1 -27,000 14,500 2 11,500 15,000 3 20,500 16,500 4 30,500 18,000 5 35,000 19,000 6 38,000 19,500 7 40,000 20,000 a) Calculate each project's IRR and the crossover rate of the two projects. b) Calculate each project's MIRR at a reinvestment rate of 10%. c) Calculate each project's regular payback period. d) Calculate each project's discounted payback period with a cost of capital of 12%. e) Calculate each project's profitability index at a cost of capital of 12%. f) Calculate each project's NPV. g) Construct the NPV profiles for Project A and Project B. (Note: plot the NPVs of both projects on the same graph.) The cost of capital ranges from 0% to 30% by increments of 2%Step by Step Solution
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