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All techniques, conflicting rankings All techniques, conflicting rankings Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, each with an initial investment of $150,000.
All techniques, conflicting rankings
All techniques, conflicting rankings Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, each with an initial investment of $150,000. The company's board of directors has set a 4-year payback requirement and has set its cost of capital at 9%. The cash inflows associated with the two projects are shown in the following table: a. Calculate the payback period for each project. Rank the projects by payback period. b. Calculate the NPV of each project. Rank the project by NPV. C. Calculate the IRR of each project. Rank the project by IRR. d. Make a recommendation. i Data Table a. The payback period of project Ais years. (Round to two de X in order to copy the contents of the data table below (Click on the icon here into a spreadsheet.) Year 1 2 Cash inflows (CF) Project A Project B $45,000 $75,000 $45,000 $60,000 $45,000 $30,000 $45,000 $30,000 $45,000 $30,000 $45,000 $30,000 3 4 5 6 Print Done Enter your answer in the answer box and then click CheckStep by Step Solution
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