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

All techniques with NPV profile - 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 14%. The cash flows for each project are shown in the following table: a. Calculate each project's payback period. b. Calculate the net present value (NPV) for each project. c. Calculate the internal rate of retum (IRR) for each project. d. Indicate which project you would recommend. a. The payback period of project Ais years. (Round to two decimal places.) G Project A $100,000 Project B $60,000 Initial investment (CF) Year (t) - Cash inflows (CF) $20,000 $20,000 $25,000 $20.000 $30,000 $20,000 $35,000 $20,000 $40.000 $20,000
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