The followinginformation about two mutually exclusive projects R and S are relevant for requirements 1(a) to 1(c) only. Max-W Company is consideringinvesting in project R, which will require an outlay of $900 million. The project will have a four-year life and at the end of that time,the equipment will be scrapped.

	Year-1	Year-2	Year-3	Year-4
Cash inflows	$690m	$590m	$570m	$480m
Cash outf lows	$280m	$220m	$220m	$200m

The company has a required rate of return of 9.27%.The company normally has two-year payback criteria.

The alternative project-S offers the following net cash flows:

Year-0 ($900m);Year-1 $257m;Year-2 $315m;Year-3 $443m and Year-4 $507m.

a. Calculate the (i) NPV,(ii) IRR,(iii) PVI,(iv) Payback period,(v) Discounted payback period for proj ects R and S.

b. Calculate the crossover rate (between projects R and S) based on the cash flow data mentioned above. Show the range of required rates for which either project-R or project-S would be preferred.

c. Based on your findings in requirements a and b above,what would be the decision of selection of project (whenthe required rate of return is 9.27 percent)7

Please show the workings in excel including the formula.