The State Spartan Corporation is considering two mutually exclusive projects. The free cash flows associated with these projects are shown in the popup window. The required rate of return on these projects is 7 percent. a. What is each project's payback period? b. What is each project's NPV? c. What is each project's IRR? d. What has caused the ranking conflict? e. Which project should be accepted? Why?

PROJECT B - $50,000 0 PROJECT A - $50,000 15,625 15,625 15,625 15,625 15,625 Initial outlay Inflow year 1 Inflow year 2 Inflow year 3 Inflow year 4 Inflow year 5 0 0 0 100,000