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V. Consider two mutually exclusive R&D projects that Savage Tech is considering. Assume the discount rate for both projects is 15%. Year 0 1 2

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V. Consider two mutually exclusive R&D projects that Savage Tech is considering. Assume the discount rate for both projects is 15%. Year 0 1 2 3 4 5 Project A -$1,030,000 495,000 495,000 390,000 295,000 203,000 Project B -$1,725,000 518,000 565,000 578,000 783,000 762,000 Compute the below (preferably, use an excel spreadsheet). Show the general equation utilized in excel to compute each method for each project below this table. Show your final corresponding answers in the blank columns inside the table. Project A Project B A or B? Method NPV IRR Incremental IRR PI

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