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PLEASE SHOW WORK IN EXCEL Two mutually exclusive investments have the cash flow of: Project A I=$200 1=$300 1 1=$275 2 1=$250 3 1=$225 4

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PLEASE SHOW WORK IN EXCEL

Two mutually exclusive investments have the cash flow of: Project A I=$200 1=$300 1 1=$275 2 1=$250 3 1=$225 4 L=$800 5 I=200 1=$50 C=$400 0 1=$250 1 I=$150 I=$100 4 2 3 5 L=$400 C: Cost, I:Income, L:Salvage The minimum rate of return is 24% for the first two years and 12% for the last three years. Using NPV, explain which investment is economically better? Show all your work in detail please. C=$800 0 Project B

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