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Prepare an Excel spreadsheet to present your financial decisions for two projects using NPV, IRR and the Payback Period techniques. There are two mutually exclusive

Prepare an Excel spreadsheet to present your financial decisions for two projects using NPV, IRR and the Payback Period techniques.

There are two mutually exclusive projects A and B. Both projects require an investment of $10 million but the timing is different for the rest of the expected net cash flows.

For project A For project B

Period 0 = - $10.0 m - $10.0 million

Period 1 = 6.5 3.5 m

Period 2 3.0 3.5

Period 3 = 3.0 3.5

Period 4 = 1.5 3.5

Total Inflow = $14.0m $14.0m

Prepare 3 possible scenarios for each project. Use the 5% discount rate (WACC) for a forecast if these are low risk projects, 10% if we think they have a normal amount of risk and 15% if we decide that these are high risk projects.

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