Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, that both cost $170,000. The company's board of directors has set a 4-year payback requirement the cost of capital is 11%. The project cash flows are shown in the following table attached.
a. 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.
Extracted text: (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Cash flows (CF) Year Project A Project B 1 $50,000 $75,000 $50,000 $70,000 $30,000 3 $50,000 4 $50,000 $50,000 $30,000 $30,000 $50,000 $30,000 Print Done ancial calculator Get more help - Media - Clear all ma ive Answers In as jast as 30 minutes