All techniques with NPV profilelong dashMutually exclusive projects$$Projects A and$$ B$,$ of equal$$ risk, are alternatives for expanding Rosa$$ Company's capacity. The$$ firm's cost of capital is $16\%.$ The cash flows for each project are shown in the following$$ table:

Initial investment $150,000110,000$

Year Cash inflows

$135,00035,000$

$240,00035,000$

$345,00035,000$

$450,00035,000$

$555,00035,000$

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.