All techniques with NPV profilelong dash Mutually exclusive projectsProjects 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.

Data Table X (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 Project B Initial investment $230,000 $200,000 (CF) Year (1) Cash inflows (CF) $60,000 $60,000 2 $65,000 $60,000 3 $70,000 $60,000 4 $75,000 $60,000 5 $80,000 $60,000 Print Done 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 A is $ (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 Bis %. (Round to two decimal places.) d. Which project will you recommend? (Select the best answer below.) O A. Project B O B. Project A