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Question. The table below presents information about the cash flows of 3 projects. Note: Numbers are in millions of $ Year o Year 2 Year

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Question. The table below presents information about the cash flows of 3 projects. Note: Numbers are in millions of $ Year o Year 2 Year 4 Year 6 Project A B Year 1 60 100 25 Year 7 -5 - 150 -410 -100 10 Year 3 50 50 10 50 100 20 15 150 10 Year 5 10 170 - 10 As a financial advisor of the alpha company, you are supposed to answer this question that may help the managers to decide on investment. There is no budget limitation for investment at the same time in a different project. The opportunity cost of capital is 10%. A. Construct an Excel spreadsheet to calculate the Net Present Value for each project. According to the Net Present Value criteria which project is acceptable? Why? Explain. B. Construct an Excel spreadsheet to calculate the Internal Rate of Return for each project. According to the Internal Rate of Return criteria which project is acceptable? Why? Explain you are supposed to write your decision in this part just according to IRR). C. Calculate the Payback period for each project and compare the results according to the payback period method. D. Compare the projects together according to these three different criteria and explain your final investment decision to the managers. Explain the advantage and disadvantages of each method on these projects to the managers of the company, THE END

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