You are an advisor to Keon and need to provide a recommendation

For this topic you are provided with details of two mutually exclusive projects for Keon Ltd.You are an advisor to Keon and need to provide a recommendation as to which projectKeon should undertake if either. Your advice will be set out in a brief report.The details of the two projects are provided in the first thread. (Blackboard will not let meattach the project details in this space!)You will need to use Excel to do the analysis. Please attach your Excel workings as anattachment to your report. Your report is to be directly readable in your thread.In your report give the NPV for each project and your recommendation. You may addfurther details as to how you went about doing the analysis but do keep your reportbrief.Your excel spreadsheet should be set out clearly so that the person commenting on youranswer can follow what you have done. Keon Ltd has two mutually exclusive projects under consideration.Both projects can be considered replacement projects.The details of the projects are given in the table below. Development costs to date Project A$125 000 Project B$135 000 Life of project 4 years 5 years Depreciation Straight line fully over lifeof project Straight line fully over lifeof project Machine cost $2.4 million $3.5million Residual No residual No residual Working capital needs Injection of $250 000 atbeginning of project One injection only of$500 000 at beginning ofproject Further injection of$150 000 at the end ofyear 1Sales $1.3m for each year of theproject$0.23m for each year ofthe project$0.016m for each year ofthe project $1.57 m for each year ofthe project$0.345m for each year ofthe project$0.026m for each year ofthe project Finance needs Yule Ltd would need toborrow $1m for 3 years at7% p.a. Yule Ltd would need toborrow $1.1m for 4 years at7% p.a. Tax rate 25% 25% Discount rate for project 12.5% 12.5% Cost of salesOther costs There is no inflation.Use NPV analysis to advise Keon Ltd as to which project if either should be adopted.