All techniquces, conflicting rankings Nicholson Roofing Materials Inc.is considering two mutually exclusive projccts, cach with an initial investmcnt of $150,000.The company's board of directors has set a maximum 4-year payback requirement and has set its cost of capital at 9%.The cash inflows associated with the two projccts are shown in the following table.

	Cash Inflows
Year	Project A	ProjectB
1	$45,000	75,000
2	45,000	60,000
3	45,000	30,000
4	45,000	30,000
5	45,000	30,000
6	45,000	30,000

1.Calculate the NPVof each project at 9%.

2. Derive the IRR of cach projcct.

3.Go back one more time and calculate the NPV of cach projcct using a cost of

capital of 12%.Does the ranking of the two projects change compared to your answcr in part 1? Why?