??Projects A and? B, of equal? risk, are alternatives for expanding Rosa? Company's capacity. The? firm's cost of capital is 11?%.

The cash flows for each project are shown in the following? table:

a.??Calculate each? project's payback period.

b.??Calculate the net present value? (NPV) for each project.

c.??Calculate the internal rate of return? (IRR) for each project.

d.??Indicate which project you would recommend.

Project A $200,000 Project B $160,000 Initial investment (CFo) Year (t) Cash inflows (CFt) $50,000 $55,000 $60,000 $65,000 $70,000 $50,000 $50,000 $50,000 $50,000 $50,000 4 5