All techniques, conflicting rankings. Nicholson Roofing Materials, Inc. is considering two mutually exclusive projects, each with an initial investment of $180,000. The companys board of directors has set a 4-year payback requirement and has set its cost of capital at 12%. The cash inflows associated with the two projects are shown in the attached 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.

e. According to the payback method, which project should the firm choose?

f. According to the NPV method, which project should the firm choose?

g. According to the IRR method, which project should the firm chooise?

h. Which project will you recommend?

i. Display all calculations in an Excel Spread sheet.

Cash Inflows

Year	Project A	Project B
1	$60,000	$65,000
2	$60,000	$70,000
3	$60,000	$50,000
4	$60,000	$50,000
5	$60,000	$50,000
6	$60,000	$50,000