Question: please help All techniques with NPV profile - Mutually exclusive projects Projects A and B, of equal risk, are alternatives for expanding Rosa Company's capacity.
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 11%. The cash flows for each project are shown in the following table a. Calculate each project's payback period. b. Calculate the net present value (NPV) for each project. Data Table c. Calculate the intamal rate of retum (IRR) for each project d. Indicate which project you would recommend, The payback period of project is years. (Round to two decimal places) (Click on the loon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) The payback period of project B isyears(Round to two decimal places.) Project A Project Initial investment b. The NPV of project Ass (Round to the nearest cent) $180,000 $150,000 (CF) The NPV of project is $(Round to the nearest cont.) Year (0 Cash inflows (CF) $45,000 $45,000 c. The IRR of project is 0% (Round to two decimal places) 2 $50,000 $45,000 3 $55,000 $45,000 The IRR of project B is % (Round to two decimal places) $80,000 $45,000 $65,000 $45,000 d. Which project will you recommend? (Select the best answer below.) 5 Print OA Project B OB. Project A Done
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