1 5. Your firm is subject to capital rationing and can only invest $60,000. You've estimated the following cash flows (in $) for two projects Year Project A Project B 0 -52,000 -52,000 10,000 30,000 20,000 20,000 3 30,000 10,000 4 40,000 0 The required return for both projects is 8%. a. What is the payback period for project A? N b. What is the payback period for project B? C. Which project seems better according to the payback method? Project B Project A d. What is the NPV for project A? e. What is the NPV for project B? f. Which project seems better according to the NPV method? Project B Project A g. Compare the answers to parts 3 and 6. If both projects are mutually exclusive, which one should you accept? Project A Project B