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 14%. The cash flows for each project are shown in the following table: B a. Calculate each project's payback period. b. Calculate the nel present value (NPV) for each project. 6. Calculate the intemal rale of return (IRR) for each project. d. Indicate which project you would recommend. a. The payback period of project Aisyears. (Round to two decimal places.) The payback period of project Bis years. (Round to two decimal places.) b. The NPV of project Als S(Round to the nearest cent.) The NPV of project Bis (Round to the nearest cent.) c. The IRR of project A is %. (Round to two decimal places.) The IRR of project B is %. (Round to two decimal places.) d. Wnich project will you recommend? (Select the best answer below.) O A Project B OB. Project A Project A $80,000 Project B $50,000 Initial investment (CF) Year (1) 1 2 Cash inflows (CFt) $15,000 $15,000 $20,000 $15,000 $25,000 $15,000 $30,000 $15,000 $35,000 $15,000 3 4 5
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