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X Calculating NPV, IRR, and the crossover rate - Excel ? FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign in A Calibri -11

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X Calculating NPV, IRR, and the crossover rate - Excel ? FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign in A Calibri -11 X Da Paste A A % M BIU - Cells Editing Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font c A1 v f A B D E F G H 1 2 3 Consider the following two mutually exclusive projects. What is the IRR for each project? What is the crossover rate between the two projects? What is the NPV for each project at the various interest rates in cells C27 to C32? nces 4 5 6 7 6 8 Annual cash flows: Year 0 Year 1 Year 2 Year 3 X (24,000) 10,620 10,900 10,500 $ $ $ $ Y (24,000) 12,100 9,360 10,400 9 $ 10 11 12 13 Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel functions to answer this question. 14 15 16 17 18 IRR (X) IRR (Y) Difference in cash flows 10 Van Complete the following analysis. Do not hard code values in your calculations. Y must use the built-in Excel functions to answer this question. IRR (X) IRR (Y) Difference in cash flows Year o Year 1 Year 2 Year 3 Crossover rate NPV (X) NPV (Y) Required return 0% 5% 10% 15% 20% 25% Sheet1

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