Nicholson Roofing? Materials, Inc., is considering two mutually exclusive? projects, each with an initial investment of 100,00.The? company's board of directors has set a? 4-year payback requirement and has set its cost of capital at 12%. The cash inflows associated with the two projects are shown in the following? table

Project A Project B

Year 1 30,000 65,000

Year 2 30,000 70,000

Year 3 30,000 10,000

Year 4 30,000 10,000

Year 5 30,000 10,000

Year 6 30,000 10,000

Calculate the payback period for each project. Rank the projects by payback period.

b.Calculate the NPV of each project. Rank the project by NPV.

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

d.Make a recommendation.