Question: Please explain in detail(Please don't use Excel to solve) show work: a. What is each projects payback period? b. What is each projects net present

Please explain in detail(Please don't use Excel to solve) show work: a. What is each projects payback period?

b. What is each projects net present value?

c. What is each projects internal rate of return?

d. What has caused the ranking conflict?

e. Determine the cost of capital that will result in a conflict (i.e. the cross-over rate).

f. Which project should be accepted? Why?

1. The State Spartan Corporation is considering two mutually exclusive projects. The required rate of return (i.e. the cost of capital) is 10%. The cash flows associated with those projects are as follows: Year 0 Project B -$50,000 0 0 1 Project A -$50,000 15,625 15,625 15,625 15,625 15,625 2 0 0 4 5 100,000

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