Projects A and B, of equal risk, are alternatives for expanding Rosa Companys capacity. The firms cost of capital is 13%. The cash flows for each project are shown in the following table.

	Project A	Project B
Initial Investment	$80,000	$50,000
Year(t)	Cash Inflows
1	$15,000	15,000
2	20,000	15,000
3	25,000	15,000
4	30,000	15,000
5	35,000	15,000

1. Calculate each projects payback period.
2. Calculate NPV for each project
3. Calculate IRR for each project
4. Summarize the preferences dictated by each measure, and indicate which project you would recommend? Why?