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 cost

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 12%. 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 return (IRR) for each project. d. Indicate which project you would recommend. a. The payback period of project Ais Ll 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 Bis $ (Round to the nearest cent.) C. The IRR of project is %. (Round to two decimal places.) The IRR of project Bis %. (Round to two decimal places.) d. Which project will you recommend? (Select the best answer below.) O A. Project B OB. Project A Click to select your answer(s). care (Round to two decimal places Data Table in order to copy the contents of the data table below (Click on the icon here into a spreadsheet.) Project A $60,000 Project B $30,000 Initial investment (CF) Year (t) o AWN- Cash inflows (CF) $10,000 $10,000 $15,000 $10,000 $20,000 $10,000 $25,000 $10,000 $30,000 $10,000 Print Done
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