Question: All techniques with NPV profileMutually exclusive projects Projects A and B, of equal risk, are alternatives for expanding Rose Company's capacity. The firm's cost of
All techniques with NPV profileMutually exclusive projects Projects A and B, of equal risk, are alternatives for expanding Rose Company's capacity. The firm's cost of capital is 11%. The cash flows for each project are shown in the following table: 3 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.) = 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 Project B Initial investment $130,000 $100,000 (CF) Cash inflows (CF) 1 $30,000 $30,000 $35,000 $30,000 3 $40,000 $30,000 $45,000 $30,000 $50,000 $30,000 Year (0) 2 4 5 Print Done ol
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