1. A company is considering two investment projects, A and B, with the following cash flows:

Project A:

• Year 1: $10,000
• Year 2: $15,000
• Year 3: $20,000

Project B:

• Year 1: $12,000
• Year 2: $16,000
• Year 3: $18,000

The company requires a 10% rate of return on its investments. Calculate the net present value (NPV) of each project and determine which project is more attractive.

2.A company wants to determine the internal rate of return (IRR) for a project with the following cash flows:

• Year 1: -$100,000 (initial investment)
• Year 2: $35,000
• Year 3: $45,000
• Year 4: $55,000