Describe and discuss what decision would be made in each range and why.

Question :(based on Excel Examples)

Consider the two mutually exclusive projects described in the table below. (Note: Each part of the question requires a written answer.)

a) Assuming 9% minimum attractive rate of return (MARR), should either of the two projects be accepted? Why?

b) Assuming 16% MARR, should either of the two projects be accepted? Why?

c) For any positive value of the MARR, divide the possible MARR values into ranges with different decisions; describe and discuss what decision would be made in each range and why. You will need to calculate the crossover rate to determine the precise MARR where the decision changes. Include an NPV profile table and chart to illustrate your answer.

NOTE :

1.Start with a new Excel file and answer the question on a sheet .

2. Please make sure you use cell references wherever appropriate (everywhere possible).

3. As in the example Excel file a, list the model inputs (the information provided in the question) at the top. Once you start working on developing your model below the inputs, you should NOT be typing any numbers or answers in your cells; instead all cells should include cell references and Excel functions wherever possible. DO NOT use discount factors within your Excel file; use Excel functions whenever you need to compute a future value or present value. Perform all of your calculations directly in the Excel cells; do not calculate anything outside of Excel; Excel functions you may need to use: PV, FV, PMT, RATE, NPER, NPV, and IRR. Some questions ask for a written answer, in addition to calculating an answer in Excel; please make sure you answer all questions asked; create a box below your calculations where you type in your written answer whenever required.

Note: Always assume cash flows occur at the end of the period.

Please refer attached excel sheets as reference. Answer should be Implemented in excel