SHOW ME HOW TO DO IT IN EXCEL (SHOW THE FUNCTIONS USED AND HOW YOU USED THEM) + CLERLY SHOW INPUTS AND OUTPUTS. Yakima Racks is evaluating two alternatives, mutually exclusive methods for a new kayak carrier frame. It has developed the following estimated after-tax cost savings for each alternative method. Project managers require an appropriately applied IRR methodology for their decisions. If the project discount rate is 11%, and the cash flows are those noted below, which method would you recommend? Provide results for both traditional NPV analysis and an appropriately applied IRR analysis. Explain your recommendation fully on your worksheet. Show all cash flows and related analyses. Clearly specify your recommendation and reasoning clearly on your worksheet. A: Titanium Pully CFs: T0=(115,000), T1=1,000; T2=5,000; T3=25,000; T4=45,000; T5=100,000 B: Metal Hook CFs: T0=(95,000), T1=45,000; T2=35,000; T3=30,000; T4=20,000; T5=10,000 THEN, ANSWER THIS QUESTION CHOOSE FROM THE FOLLOWING Group of answer choices Method A (Titanium Pulley) since the incremental IRR is greater than the discount rate. Method A (Titanium Pulley) since it has a higher NPV than the Method B. Method B (Metal Hook) since it has an IRR that is higher than Method A. Method B (Metal Hook) since the incremental IRR is less than the discount rate. None of the above. Specify answer clearly in your worksheet.
SHOW ME HOW TO DO IT IN EXCEL (SHOW THE FUNCTIONS USED AND HOW YOU USED THEM) + CLERLY SHOW INPUTS AND OUTPUTS. Yakima Racks is evaluating two alternatives, mutually exclusive methods for a new kayak carrier frame. It has developed the following estimated after-tax cost savings for each alternative method. Project managers require an appropriately applied IRR methodology for their decisions. If the project discount rate is 11%, and the cash flows are those noted below, which method would you recommend? Provide results for both traditional NPV analysis and an appropriately applied IRR analysis. Explain your recommendation fully on your worksheet.
Show all cash flows and related analyses. Clearly specify your recommendation and reasoning clearly on your worksheet.
A: Titanium Pully CFs: T0=(115,000), T1=1,000; T2=5,000; T3=25,000; T4=45,000; T5=100,000
B: Metal Hook CFs: T0=(95,000), T1=45,000; T2=35,000; T3=30,000; T4=20,000; T5=10,000
Method A (Titanium Pulley) since the incremental IRR is greater than the discount rate.
Method A (Titanium Pulley) since it has a higher NPV than the Method B.
Method B (Metal Hook) since it has an IRR that is higher than Method A.
Method B (Metal Hook) since the incremental IRR is less than the discount rate.
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