Question: Mutually exclusive projects Projects A and B, of equal risk, are alternatives for expanding Rosa Company's capacity. The firm's cost of capital is 16%. The

 Mutually exclusive projects Projects A and B, of equal risk, are

Mutually exclusive projects Projects A and B, of equal risk, are alternatives for expanding Rosa Company's capacity. The firm's cost of capital is 16%. The cash flows for each project are shown in the All techniques with NPV profile following table: 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. i Data Table a. The payback period of project Aisyears. (Round to two decimal pla The payback period of project Bis years. (Round to two decimal places Overview, question 7 of 7, 6 complete b. The NPV of project A is $ TROUHU to the nearest cent.) in order to copy the contents of the data table below (Click on the icon here into a spreadsheet.) The NPV of project B is $ . (Round to the nearest cent.) Project A $210,000 Project B $180,000 c. The IRR of project A is %. (Round to two decimal places.) Initial investment (CF) Year (1) The IRR of project B is %. (Round to two decimal places.) d. Which project will you recommend? (Select the best answer below.) Cash inflows (CF) $55,000 $55,000 $60,000 $55,000 $65,000 $55,000 $70,000 $55,000 $75,000 $55,000 O A. Project B OB. Project A Print Done Click to select your answer(s)

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