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PLEASE SHOW ALL CALCULATION STEPS IN EXCEL: Orchid Biotech Company is considering two mutually exclusive projects (see operational CF estimates below). OBCs cost of capital

PLEASE SHOW ALL CALCULATION STEPS IN EXCEL:

Orchid Biotech Company is considering two mutually exclusive projects (see operational CF estimates below). OBCs cost of capital is 10%. Calculate NPV and IRR for both projects. A) Which project would you recommend to choose? Why? B) How your NPV and IRR may change if we incorporate leverage into these CF estimates? Explain briefly.

Year 0

Year 1

Year 2

Year 3

Project A

-100

30

153

88

Project B

-100

37

0

265

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