All techniques with NPV profilelong dashMutually exclusive projectsProjects A and B, of equal risk, are alternatives for expanding Rosa Company's capacity. Thefirm's cost of capital is 15%The cash flows for each project are shown in the following table.

Initial investment,"$110,000","$80,000" Year,Cash inflows, 1,"$25,000","$25,000" 2,"$30,000","$25,000" 3,"$35,000","$25,000" 4,"$40,000","$25,000" 5,"$45,000","$25,000"

a.Calculate each project's payback period.

Calculate the net present value (NPV) for each project.

Calculate the internal rate of return (IRR) for each project

Indicate which project you would recommend.