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​(​Time-disparity problem​) The State Spartan Corporation is considering two mutually exclusive projects. The free cash flows...

​(​Time-disparity problem​) The State Spartan Corporation is considering two mutually exclusive projects. The free cash flows associated with these projects are shown in the popup​ window: LOADING.... The required rate of return on these projects is 7 percent.

a. What is each​ project's payback​ period?

b. What is each ​project's NPV​?

c. What is each​ project's IRR​?

d. What has caused the ranking​ conflict?

e. Which project should be​ accepted? Why?

PROJECT A

PROJECT B

Initial outlay

-70,000

-70,000

Inflow year 1

     19,625

             0

Inflow year 2

    19,625

             0

Inflow year 3

     19,625

             0

Inflow year 4

      19,625

             0

Inflow year 5

      19,625

     120,000

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