(A)Your friend needs help with their homework. They need to compute the payback period on a proposed capital budgeting project - - a new wind turbine? The expected cash flows appear below. Your friend is not sure whether they must use the required rate of return of 15.6% in computing the answer. What is the payback period? Your friend in counting on you. (Answer in years, rounding to 2 decimals) Year 0 cash flow = -154,000 Year 1 cash flow = 28,000 Year 2 cash flow = 28,000 Year 3 cash flow = 28,000 Year 4 cash flow = 28,000 Year 5 cash flow = 28,000 Year 6 cash flow = 28,000 Year 7 cash flow = 28,000 Year 8 cash flow = 28,000

(B)What is the internal rate of return (IRR) of the following set of cash flows? (Enter your answer as a percentage rounding to 2 decimals, e.g., 12.34% as 12.34) Year 0 cash flow = -91,000 Year 1 cash flow = -29,000 Year 2 cash flow = 58,000 Year 3 cash flow = 55,000 Year 4 cash flow = 63,000 Year 5 cash flow = 54,000