All techniques with NPV profile long--Mutually exclusive projects Projects A and B, of equal risk, are alternatives for expanding Rosa Company's capacity. The firm's cost of capital is 10 %. The cash flows for each project are shown in the following table

	Project A		Project B
Initial investment (CFo )	$230,000		$200,000
Year (t )	Cash inflows (CFt )
1	$60,000		$60,000
2	$65,000		$60,000
3	$70,000		$60,000
4	$75,000		$60,000
5	$80,000		$60,000

a. Calculate each project's payback period.

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.