All techniques with NPV profile long dashMutually exclusive projects$$Projects A and$$ B$,$ of equal$$ risk, are alternatives for expanding Rosa$$ Company's capacity. The$$ firm's cost of capital is $15\%.$ The cash flows for each project are shown in the following$$ table:

Initial investment Project A: $110,000$ Project B: $80,000$

Year Cash inflows

$125,00025,000$

$230,00025,000$

$335,00025,000$

$440,00025,000$

$545,00025,000$

a$.$Calculate each$$ project's payback period. For both projects A and B

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

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

d$.$Indicate which project you would recommend.