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SOLVE N EXCEL. Consider there are two projects Project A and Project B , Both projects' economic life and initial investment outlays are same, and
SOLVE N EXCEL.
Consider there are two projects Project A and Project B Both projects' economic life and initial investment outlays are same, and yearly expected net cash flows from them are given as follows:
Year : project A USD
YEAR : Project B USD
YEAR : PROJECT A
YEAR PROJECT B
YEAR PROJECT A
YEAR PROJECT B
YEAR PROJECT A
YEAR PROJECT B
RR A
RR B
If the cost of capital is answer the following questions:
a Calculate the payback period, discounted payback period, NPV and Profitability index for Project A Would you accept or reject Project A Explain why. Solve in Excel
b Calculate the payback period, discounted payback period, NPV and Profitability index for Project B Would you accept or reject Project B Explain why.Solve in Excel
c Based on the results of a and above, which project would you choose? Project or Project B Explain. Solve in Excel
d Which of the projects would you choose according to internal rate of returnirr criteria? Explain why. Solve in Excell
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