QUESTION " 3a" ONLY AND SHOWFULL WORKAND EXPLANATION!! if you use excel please attach file in answer

3. (40 points) capital budgeting , time value of money

You are given with the following information of two projects planned by your company.Each cash flow per year shown in Table 1 represents the cash flow at theendof each year during the project.For instance, for project A, the cash flow as 613 in first year is expected at the end of the Year 1. The initial outlays for the projects are paid out by installments with regular payments as 0.89 million at thebeginningof each year for project 1 and $0.91 million perbeginningof each year for project 2, respectively.

ProjectYear 1Year 2Year3Year4Year5

A7342002152023172019

B63831092540

USE THE CHART

a) Suppose the cost of capital (or so-called discount rate) is 12%, what is the Net Present Value for each project? Which project would you prefer? Why?