Thomas Company is considering two mutually exclusive projects. The firm has set a maximum 4 year payback requirement and a 12% cost of capital.

2. Thomas Company is considering two mutually exclusive projects. The firm has set a maximum 4 year payback requirement and a 12% cost of capital. The company has estimated its cash flows as shown in the following table:Project A Project BInitial Investment (CF0) $130,000 $85,000Year(t) Cash inflows (CFt)Project A Project B1 $25,000 $40,0002 35,000 35,0003 45,000 30,0004 50,000 10,0005 55,000 5,000a. Calculate the Payback Period for each project (para cada uno de los proyectos).b. Calculate the NPV of each project (para cada uno de los proyectos), and assess its acceptability.c. Calculate the IRR for each project (para cada uno de los proyectos), and assess its acceptability.d. Evaluate and discuss the rankings of the two projects on the basis of your findings in parts a, b and c. (Discuta y decida si los proyectos son o no aceptables bajo cada uno de los métodos utilizados en a, b y c).