Assume that you are asked to analyze two proposed capital investments project A and project B. Each project requires a net investment outlay of $20,000 and the opportunity cost of capital for each project is 10%. The projects expected net cash flows are presented below. Hint: After concluding parts a c, complete the table below. After that, complete part d. You can use formulas, a financial calculator, or excel to find the solutions.

Year	Project A ($)	Project B ($)
0	(20,000)	(20,000)
1	13,000	6,000
2	6,000	6,000
3	6,000	6,000
4	1,000	6,000
Payback
NPV
IRR

a. Calculate each projects payback

b. Calculate each projects net present value (NPV)

c. Calculate each projects internal rate of return (IRR) using excel or a financial calculator.