Question
Please use two decimal places on your percentages. Your firm is evaluating two projects, A and B.You have developed the cash flow charts for the
Please use two decimal places on your percentages.
Your firm is evaluating two projects, A and B.You have developed the cash flow charts for the two projects (see attached Excel sheet in this document). The weighted average cost of capital for the firm is 8%.
a.Using Excel, you need to calculate the NPV, IRR and MIRR for both projects.
b.If the projects are mutually exclusive, what is your accept/reject decision under each of the techniques.
c.Using Excel, plot the NPV profile and identify the crossover rate. What does this information tell you as the financial manager?
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