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Please use Excel Given the cash flow stream of the following mutually exclusive projects. Use a discount rate of 13%. Project A: Time 0 =

Please use Excel

Given the cash flow stream of the following mutually exclusive projects. Use a discount rate of 13%. Project A: Time 0 = $-500; Time 1 = $150; Time 2: $245; Time 3 = $320 ; IRR =17.76 Project B: Time 0 = $-800; Time 1 = $360; Time 2: $360; Time 3 = $360; IRR=16.65 a. Based on the given IRRs, will you choose Project A? Why or why not? b. Find NPV of both projects. Which project will you choose based on NPV? c. Perform incremental analysis and show that Project B, with the higher NPV, will be preferred to project A. You can use Keys to find any IRR, if needed.

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