*Calculate the IRR of each project. Rank the project by IRR.

*Make a recommendation.

Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, each with an initial investment of $110 comma 000. The company's board of directors has set a 4-year payback requirement and has set its cost of capital at 8%.

	Cash inflows (CFt)
Year	Project A	Project B
1	$35 comma 000	$75 comma 000
2	$35 comma 000	$50 comma 000
3	$35 comma 000	$20 comma 000
4	$35 comma 000	$20 comma 000
5	$35 comma 000	$20 comma 000
6	$35 comma 000	$20 comma 000