P$10-24$ All techniques, conflicting rankings Nicholson Roofing Materials Inc. is

considering two mutually exclusive projects that both cost $$150,000.$ The company's

board of directors has set a maximum four$-$year payback requirement, the cost of

capital is $9\%.$ The project cash flows appear below.

a$.$ Calculate the payback period for each project.

b$.$ Calculate the NPV of each project at $0\%.$

c$.$ Calculate the NPV of each project at $9\%.$

d$.$ Derive the IRR of each project.

e$.$ Rank the projects by each of the techniques used. Make and justify a

recommendation.

f$.$ Go back one more time and calculate the NPV of each project using a cost of

capital of $12\%.$ Does the ranking of the two projects change compared to your

answer in part $e?$ Why?