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 12%. The cash flows for each project are shown in the following table

Project A. Project B. Initial investment

(CF0) $130,000. $100,000

Year(t). Cash inflows (CFt)

1. $30,000. $30,000

2. $35,000. $30,000

3. $40,000. $30,000

4 $45,000 $30,000

5 $50,000 $30,000

a.Calculate each project's paybackperiod.

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.