A corporation is in the process of choosing the better of two equal-risk, mutually exclusive investment projects - project A, and project B. The relevant cash flows for each project are shown in the following table. The corporations cost of capital for similar projects is 15%.

Year	Project A	Project B
0	-29,000	-27,000
1	10,000	11,000
2	10,000	10,000
3	10,000	9,000
4	10,000	8,000

(a). Calculate each projects payback period

(b). Calculate the net present value for each project

(c). Calculate the internal rate of return for each project

(d). Summarize the preferences dictated by each measure you calculated and indicate which project you would recommend. Explain why.

(e). Draw the NPV profiles for these projects on the same set of axes and explain the circumstances under which a conflict in rankings might exist.