18. Tutak Industries is considering a project requiring an initial investment of

$200,000 followed by annual cash inflows of $45,000 for the next six years. A second six-year project has an initial outlay of $325,000.

a. How much would the second project have to generate in annual cash flows to have the same IRR as the first?

b. If Tutak’s cost of capital is 8%, how much would the second project have to generate in annual cash flows to have the same NPV as the first project?