• Nicholson Roofing Materials Inc. is considering two mutually exclusive projects that both cost $150,000. The companys board of directors has set a maximum four-year payback requirement. The cost of capital is 9%. The project cash flows appear below.
• Here are the results of different capital budgeting techniques:
  • For each capital budgeting technique, identify which project is better? Make and justify a recommendation based on each technique.
  • After completing your assessment based on the individual techniques, which project would you recommend overall and why?

	Class Inflows (CFt)
Year	Project A	Project B
1	$45,000	$75,000
2	$45,000	$60,000
3	$45,000	$30,000
4	$45,000	$30,000
5	$45,000	$30,000
6	$45,000	$30,000

	Project A	Project B
Payback Period	3.33	2.50
Discounted Payback Period	4.14	3.35
NPV	$51,866.34	$51,112.36
Profitability Index	1.34	1.34
IRR	19.90%	22.70%
MIRR	14.53%	14.42%