Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, each with an initial investment of $150,000. The companys board of directors has set a maximum 4-year payback requirement and has set its cost of capital at 9%. The cash inflows associated with the two projects are shown in the following table:

	Cash inflows (CFt)
Year	Project A ($)	Project B ($)
1	45,000	75,000
2	45,000	60,000
3	45,000	30,000
4	45,000	30,000
5	45,000	30,000
6	45,000	30,000

1. Calculate the payback period for each project.
2. Calculate the NPV of each project at 10%
3. Calculate the NPV of each project at 9%.
4. Derive the IRR of each project.
5. Rank the projects by each of the techniques used. Make and justify a recommendation.