The CEO of Bed, Bath and Beyond (BBBY) is presented with the following two mutually exclusive projects.

Year Project A Project B

0 -$150,000,000 -$372,500,000

1 68,710,000 159,410,000

2 76,900,000 193,300,000

3 71,400,000 154,900,000

4 40,610,000 110,510,000

FACTSET Quiz:

(a) What is the yield of the 10 Year Treasury Note? 15 points

(b) How many bonds does BBBY have? 15 points

(c) What is BBBYs bond rating? How risky are BBBYs bonds? 20 points

(d) What is BBBY beta? How risky are BBBYs common stocks? 15 points

(e) What is the WACC of BBBY? 5 points

Excel Exercise:

(a) What is the IRR for each project? 25 points

(b) What is the NPV for each project? 25 points

(c) Which, if either, of the projects should the company accept? Explain why? 30 points

Can you please answer all questions with excel formulas.