Calculate payback period for project

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Wahid Roofting Materials Inc. is considering two mutually exclusive projects, each with an initial investment of $150,000. The company's board of directors has set a maximum of 4-year payback requirement and has set its cost of capital at (6+ last digit of your ID)%. The cash inflows associated with the projected as follows: Project Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 A Th. 45.000 TK. 45,000 Th. 45.000 TK. 45,000 TK. 45.000 TK. 45.000 B Th. 75,000 TK. 60,000 Th. 30,000 Tk. 30,000 TK. 30,000 TK. 30,000

a. Calculate payback period for each project.

b. Calculate IRR for each project.

c. Rank the projects by each of the techniques used. Make and justify your recommendation.

Reference no: EM133062652

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