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PLEASE use excel to solve this and please show all the formulas used Question 1 (25 points): An investor has two investment alternatives, Project A
PLEASE use excel to solve this and please show all the formulas used
Question 1 (25 points): An investor has two investment alternatives, Project A and Project B, that are mutually exclusive. Other investment opportunities also exist at 10% minimum rate of return (i* = 10%). Cash flow for Project A and B are given as: Project A: L=$7,500 C=-4,000 C=5,000 I=3,000 I=3,000 I=3,000 I=3,000 I=2,500 I=2,500 1=2,500 I=4,500 Year 0 1 2 3 4 5 6 7 8 C: Cost. I: Income, L: Salvage Value Project B: C=-10,000 C=-4,000 I=4,250 I=4.000 1=3.750 I=3,500 I=3,250 I=3,000 I=1,750 I=4,500 L=$10,000 Year 0 1 2 3 4 5 6 7 8 C: Cost, I: Income, L: Salvage Value Using NPV and ROR analysis conclude which project is a better investment. Your answer should include incremental cash flow and incremental analysis for both NPV and RORStep by Step Solution
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