Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, each with an initial investment of $110,000. The company's board of directors has set a 4-year payback requirement and has set its cost of capital at 9%. The cash inflows associated with the two projects are shown in the following table:

Cash inflows (CFt)
Year	Project A		Project B
1	$35,000		$65,000
2	$35,000		$60,000
3	$35,000		$20,000
4	$35,000		$20,000
5	$35,000		$20,000
6	$35,000		$20,000

a. Calculate the payback period for each project. Rank the projects by payback period.

b.Calculate the NPV of each project. Rank the project by NPV.

c.Calculate the IRR of each project. Rank the project by IRR.

d.Make a recommendation.

a.The payback period of project A is _______ years.(Round to two decimal places.)

The payback period of project B is ________ years.(Round to two decimal places.)

According to the payback method, which project should the firm choose?(Select the best answer below.)

A. Project B

B. Project A

b.The NPV of project A is $______. (Round to the nearest cent.)

The NPV of project B is $_______. (Round to the nearest cent.)

According to the NPV method, which project should the firm choose?(Select the best answer below.)

A. Project B

B. Project A

c.The IRR of project A is ______%. (Round to two decimal places.)

The IRR of project B is _______%. (Round to two decimal places.)

According to the IRR method, which project should the firm choose?(Select the best answer below.)

A. Project B

B.Project A

d. Which project will you recommend?(Select the best answer below.)

A. Project B

B. Project A