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Calculate the payback period for each project

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Nicholson Roofing 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 4-year payback requirement and has set its cost of capital at 9%. The cash inflows associated with the two projects are shown in the following table.

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a. Calculate the payback period for each project.

b. Calculate the NPV of each project at 0%.

c. Calculate the NPV of each project at 9%.

d. Derive the IRR of each project.

e. Rank the projects by each of the techniques used. Make and justify arecommendation.

Reference no: EM131108229

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