Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, each with an initial investment of $150,000. The company€™s board of directors has set a maximum 4-year payback requirement and has set its cost of capital at 9%. The cash inflows associated with the two projects are shown in the following table.

a. Calculate the payback period for each project.
b. Calculate the NPV of each project at 0%.
c. Calculate the NPV of each project at 9%.
d. Derive the IRR of each project.
e. Rank the projects by each of the techniques used. Make and justify arecommendation.

Cash inflows (CF) Ycar Projct A Project B $75,000 60,000 30,000 30,000 30,000 30,000 $45,000 45,000 45,000 45,000 45,000 45,000