P$10-25$ All techniques with NPV profile: 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 $13\%.$ The cash flows for each project are shown in the following table.

a$.$ Calculate each project's paryback period.

b$.$ Calculate the net present value $($NPV$)$ for each project.

c$.$ Calculate the internal rate of return $($IRR$)$ for each project.

d$.$ Draw the net present value profiles for both projects on the same set of axes, and

discuss any conflict in ranking that may exist between NPV and IRR.

c$.$ Summarize the preferences dictated by each measure, and indicate which project

you would recommend. Explain why.