Assume you are evaluating two mutually exclusive projects, the cash flows of which appear below, and that your company uses a cost of capital of 8 percent to evaluate projects such as these.

a. Calculate the payback of project A.

b. Calculate the discounted payback of project A.

c. Calculate the IRR of project A.

d. Using the NPV method and assuming a cost of capital of 8 percent, which of these projects should be accepted?

Time u WNO Project A Cash Flow -$650 100 250 250 200 100 Project B Cash Flow -$700 300 -200 550 200 80 4 5