2. The World Transport Co. is considering two proposals for new software designed to improve the efficiency of their routing system. If the required return is 10 percent, what do you recommend? Why? You must calculate NPV and IRR for each problem, using the NPV and IRR functions in the Excel spreadsheet program.

Year Project A Cash Flow | Project B Cash Flow

0 $-72,000 $-64,000

1 $28,000 $26,000

2 $32,500 $30,000

3 $31,100 $25,000

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