All techniques, conflicting rankings Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, that...
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All techniques, conflicting rankings Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, that both cost $160,000. The company's board of directors has set a 4-year payback requirement the cost of capital is 10%. The project cash flows are shown in the following table: E 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. a. The payback period of project Ais years. (Round to two decimal places.) Year 1 2 Cash flows (CF) Project A Project B $50,000 $65,000 $50,000 $60,000 $50,000 $40,000 $50,000 $40,000 $50,000 $40,000 $50,000 $40,000 3 4 5 6
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