All techniques, conflicting rankings Nicholson Roofing Materials, Inc., is considering two mutually exclusiveprojects, that both cost $130,000. The company's board of directors has set a 4-year payback requirement the cost ofcapital is 7%. The project cash flows are shown in the following table: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 A is 2.89 years. (Round to two decimal places.)The payback period of project B is 1.64 years. (Round to two decimal places.)According to the payback method, which project should the firm choose? (Select the best answer below.)A. Project BB. Project Ab. The NPV of project A is $. (Round to the nearest cent.) Data table(Click on the icon here in order to copy the contents of the data table belowinto a spreadsheet.)Year123456Cash flows (CF)Project A$45,000$45,000$45,000$45,000$45,000$45,000PrintProject B$85,000$70,000$20,000$20,000$20,000$20,000Done- X

The question has asked to compute the NPV, payback period, and IRR. Capital budgeting decision:…

All techniques, conflicting rankings Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, that both cost $130,000. The company's board of directors has set a 4-year payback requirement the cost e capital is 7%. The project cash flows are shown in the following table: 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. CXX a. The payback period of project A is 2.89 years. (Round to two decimal places.) The payback period of project B is 1.64 years. (Round to two decimal places.) According to the payback method, which project should the firm choose? (Select the best answer below.) A Project B OB. Project A b. The NPV of project A is $ (Round to the nearest cent.)

All techniques, conflicting rankings Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, that both cost $130,000. The company's board of directors has set a 4-year payback requirement the cost e capital is 7%. The project cash flows are shown in the following table: 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. CXX a. The payback period of project A is 2.89 years. (Round to two decimal places.) The payback period of project B is 1.64 years. (Round to two decimal places.) According to the payback method, which project should the firm choose? (Select the best answer below.) A Project B OB. Project A b. The NPV of project A is $ (Round to the nearest cent.)

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 2CMA: Staten Corporation is considering two mutually exclusive projects. Both require an initial outlay of...

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