The star co. considering two projects, A & B, with cash flows as shown below:

period CF_A CF_B

0 -50,000 -100,000

1 20,000 60,000

2 20,000 25,000

3 20,000 25,000

4 20,000 25,000

The opportunity cost of capital for A is 14 percent. The opportunity cost of capital for B is 10 percent.

a. Calculate the payback for both projects.

b. Calculate the NPV for each project.

c. Calculate the IRR for each project.

d. Which project(s) should be accepted in each of the following situations:

(1) The projects are mutually exclusive and there is no capital constraint.

(2) The projects are independent and there is no capital constraint.

Please write your answer in paper sheet if possible. Thanks