Question: All techniques with NPV profileMutually exclusive projects Projects A and B, of equal risk, are alternatives for expanding Rosa 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 Rosa Company's capacity. The firm's cost of capital is 11%. The cash flows for each project are shown in the following table: Es a. Calculate each project's payback period. b. Calculate the net present value (NPV) for each project. c. Calculate the internal rate of retur (IRR) for each project. d. Indicate which project you would recommend Data Table a. The payback period of project Aisyears. (Round to two decimal places.) (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) 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.) Project A $100,000 Project B $60,000 Initial investment (CF) The NPV of project B is $ (Round to the nearest cent.) Year (1) C. The IRR of project Ais%. (Round to two decimal places.) Cash inflows (CF) $20,000 $20,000 $25,000 $20,000 $30.000 $20,000 $35.000 $20,000 $40,000 $20,000 1 2 3 4 5 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 A OB. Project B Print Done
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