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All techniques with NPV profile - Mutually exclusive projects Projects A and B of equal risk, are alternatives for expanding Rosa Company's capacity. The firm's
All techniques with NPV profile - Mutually exclusive projects Projects A and B of equal risk, are alternatives for expanding Rosa Company's capacity. The firm's cost of capital is 12% The cash flow shown in the following table a. Calculate each project's payback period b. Calculate the net present value (NPV) for each project c. Calculate the internal rate of return (IRR) for each project d. Indicate which project you would recommend a. The payback period of project Ais years (Round to two decimal places) The payback period of project Bis years (Round to two decimal places) b. The NPV of project A is $(Round to the nearest cent) The NPV of project Bis $ (Round to the nearest cent) c. The IRR of project is % (Round to two decimal places) Click to select your answer(s) a. The payback period of project Ais years. (Round to two decimal places.) The payback period of project Bis years. (Round to two decimal places.) b. The NPV of project Ais $. (Round to the nearest cent.) The NPV of project B is $. (Round to the nearest cent.) C. The IRR of project Ais %. (Round to two decimal places.) The IRR of project B is %. (Round to two decimal places.) d. Which project will you recommend? (Select the best answer below.) O A. Project B B. Project A Click to select your answer(s). i Data Table m's cc (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Project A $60,000 Project B $30.000 an Initial investment (CF) Year (1) 1 2 3 4 5 Cash inflows (CF) $10,000 $10,000 $15.000 $10,000 $20,000 $10,000 $25,000 $10,000 $30,000 $10,000 Print Done
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