A company is considering mutually exclusive projects. The free cash flows associated with these projects are as follows:

Project A Project B

Initial outlay -$100,000 -$100,000

Year 1 $32,000 $0

Year 2 $32,000 $0

Year 3 $32,000 $0

Year 4 $32,000 $0

Year 5 $32,000 $200,000

The required rate of return on these projects is 11%. They are of equal risk.

1. What is each projects payback period?
2. What is each projects NPV?
3. What is each projects IRR?
4. What is each projects MIRR?
5. Which project should be chosen?
6. Is it possible for conflicts to exist between NPV and IRR when independent projects are being evaluated? Explain your answer