Question

ONLY SHOW HOW TO DO IN EXCEL.

please no hard coded formulas

A. If the appropriate discount rate is 12%, rank the two projects.

B. Which project is preferred if you rank by IRR?

C. Calculate the crossover rate, namely, the discount rate r at which the NPVs of both projects are equal. D. Should you use NPV or IRR to choose between the projects? Give a brief description.

1 Section a. 2 Discount rate 12% 3 4 Year 5 6 72 83 9 4 105 11 Project A Project B -500 -500 180 200 175 250 160 170 100 25 1

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASEW ? v 00-16 ENG 07-02-2020 26 fix A1 2A 1 2 DISCOUNT RATE D E F G H I J formula Bar 12% 4 YEAR PROJECT A PROJECT B -500 180 1

W ? v 00-16 ENG 07-02-2020 26 X A38 D E F G H K L 2A 15 16 A AT RATE = 12% RANK 1 PROJECT A 18 NPV OF PROJECT A IS HIGHER 2 A

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