All techniques with NPV profileMutually exclusive projectsProjects A and B, of equal risk, are alternatives for expanding Rosa Company's capacity. The firm's cost of capital is %. The cash flows for each project are shown in the following

Project A: 180,000 Project B:150,000

Year 1 45,000 45,000

Year 2 50,000 45,000

Year 3 55,000 45,000

Year 4 60,000 45,000

Year 5 65,000 45,000

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.