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 11%. The cash flows for each project are shown in the following table: Windows Etniesta Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Project A $80,000 Project B $50,000 Initial investment (CF) Year (1) 1 2 3 Cash inflows (CF) $15,000 $15,000 $20,000 $15,000 $25,000 $15,000 $30,000 $15,000 $35,000 $15,000 4 5 Print Done a. The payback period of project A is years. (Round to two decimal places.) The payback period of project B is years. (Round to two decimal places.) b. The NPV of project A is $ (Round to the nearest cent.) The NPV of project B is $ (Round to the nearest cent.) c. The IRR of project A is %. (Round to two decimal places.) The IRR of project B is %. (Round to two decimal places.) d. Which project will you recommend? (Select the best answer below) O A. Project B OB. Project A
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