All techniques, conflicting rankings Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, each with an initial investment of $150,000The company's board of directors has set a 4-year payback requirement and has set its cost of capital at 11%. The cash inflows associated with the two projects are shown in the table below

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.

a. The payback period of project A is __ years? (Round to two decimal places.)

The payback period of project B is ___ years? (Round to two decimal places.)

According to the payback method, which project should the firm choose? (Select the best answer below.)

Project B or Project A

b. The NPV of project A is ___ (Round to the nearest cent.)

The NPV of project B is ____(Round to the nearest cent.)

According to the NPV method, which project should the firm choose? (Select the best answer below.)

c. The IRR of project A is ____ (Round to two decimal places.)

The IRR of project B is ____ (Round to two decimal places.)

According to the IRR method, which project should the firm choose? (Select the best answer below.)

d. Which project will you recommend? (Select the best answer below.)

Cash inflows (CF) Project A $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 Year Project B $85,000 $60,000 $30,000 S30,000 $30,000 30,000 4