1. The following table shows the cash flows of two projects from year 0 to year 4.

	PROJECT A	PROJECT B
YEAR 0	-100	-135
YEAR 1	50	60
YEAR 2	50	80
YEAR 3	50	60
YEAR 4	50	50

PLEASE USE EXCEL AND SHOW FORMULAS USED, THANK YOU!

Please finish the following tasks:

(a) Solve the IRR of EACH project (1 points)

(b) Solve the NPV of EACH project when required return is 15% (1 points)

(c) Solve the NPV of EACH project when required return is 30% (1 points)

(d) Solve the crossover rate for the two projects (2 points)

(e) Explain how to use the crossover rate to choose the better project, assume Project A and Project B are mutually exclusive to each other. (2 points)

(f) List the advantages and disadvantages of using IRR to make capital budgeting decisions, especially when compared to using NPV. (2 points)