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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 cost
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 10%. The cash flows for each project are 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 A is years. (Round to two decimal places.) Data Table (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 S30,000 Initial investment (CFo) Year (t) Cash inflows (CFt) 10,000 $15,000 $20,000 $25,000 $30,000 $10,000 $10,000 $10,000 $10,000 $10,000 2 4
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