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PLEASE SHOW EXCEL FORMULA & STEPS TO SOLVE PROBLEM Given the information in the table below, calculate the NPV and IRR for projects A and
PLEASE SHOW EXCEL FORMULA & STEPS TO SOLVE PROBLEM
Given the information in the table below, calculate the NPV and IRR for projects A and B. Assuming these are mutually exclusive projects, which project should the firm choose? | ||||
Project A | Project B | |||
Year | Cash Flow | Cash Flow | ||
0 | ($105.00) | ($70.00) | ||
1 | $55.00 | $30.00 | ||
2 | $45.00 | $30.00 | ||
3 | $35.00 | $30.00 | ||
4 | $25.00 | $30.00 | ||
Discount Rate | 13.50% | 14.50% | ||
Use the scratchpad to show your work in Excel. | ||||
Type your numercial answers into the yellow cells below. | ||||
Answers should be to two decimal places, e.g. 1.23% or $123.45. | ||||
NPV A | ||||
IRR A | ||||
NPV B | ||||
IRR B | ||||
Choose A or B? |
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