please show how to do in excel as well Question 8ABC Inc. is considering two mutually exclusive investment projects, eachof which requires an up-front expenditure of $2,408,000.00. You estimatethat the investments will produce the following net cash flows:YearProject A$4,870,000 $19,900,000Project B1210,200,00010,960,00020,920,0005,590,000Which project should ABC Inc. choose , assuming the cost of capital is11.25%?O Choose Project B becasue NPV8 > NPV, by $2,990,410.07.O Choose Project A becasue NPVA> NPV8 by $2,810,985.47,O Choose Project A becasue NPVA> NPVB by $3,169,834.68.O Choose Project B becasue NPVB > NPVA by $3,229,642.88.O Choose Project A becasue NPVA > NPV8 by $2,661,464.97.

To determine which project to choose, it is to required to determine the Net Present Value of both…

ABC Inc. is considering two mutually exclusive investment projects, each of which requires an up-front expenditure of $2,408,000.00. You estima that the investments will produce the following net cash flows: Project A $4,870,000 $19,900,000 Year Project B 1 10,200,000 10,960,000 3 20,920,000 5,590,000 Which project should ABC Inc. choose , assuming the cost of capital is 11.25%? O Choose Project B becasue NPV > NPV, by $2.990,410.07. O Choose Project A becasue NPVA > NPV8 by $2.810,985.47, O Choose Project A becasue NPVA> NPV8 by $3,169.834.68. O Choose Project B becasue NPVB > NPVA by $3,229,642.88. O Choose Project A becasue NPVA > NPV8 by $2,661,464,97.

ABC Inc. is considering two mutually exclusive investment projects, each of which requires an up-front expenditure of $2,408,000.00. You estima that the investments will produce the following net cash flows: Project A $4,870,000 $19,900,000 Year Project B 1 10,200,000 10,960,000 3 20,920,000 5,590,000 Which project should ABC Inc. choose , assuming the cost of capital is 11.25%? O Choose Project B becasue NPV > NPV, by $2.990,410.07. O Choose Project A becasue NPVA > NPV8 by $2.810,985.47, O Choose Project A becasue NPVA> NPV8 by $3,169.834.68. O Choose Project B becasue NPVB > NPVA by $3,229,642.88. O Choose Project A becasue NPVA > NPV8 by $2,661,464,97.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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