Question: All techniques with NPV profile - Mutually exclusive projects Project A and B, if equal risk, are alternatives for expanding Rosa Company's capacity. The firms

Project A $210,000 Project B $180,000 Initial investment (CF) Year (t) Cash inflows (CF) $55,000 $55,000 $60,000 $55,000 $65,000 $55.000 $70,000 $55,000 $75,000 $55,000 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. a. The payback period of project Ais_____years. (Round to two decimal places.) The payback period of project Bis____years. (Round to two decimal places.) b. The NPV of project Ais ________(Round to the nearest cent.) The NPV of project B is (Round to the nearest cent.) c. The IRR of project Ais ___ __(Round to two decimal places.) The IRR of project B is (Round to two decimal places.) d. Which project will you recommend? (A or B?)
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