A company is considering two projects with the following cash flows. Determine which project should be chosen based on the NPV and IRR methods if the discount rate is 10%.

Project A Cash Flows:

• Year 0: -$100,000
• Year 1: $40,000
• Year 2: $50,000
• Year 3: $60,000

Project B Cash Flows:

• Year 0: -$100,000
• Year 1: $60,000
• Year 2: $50,000
• Year 3: $40,000

Requirements:

1. Calculate the NPV for both projects.
2. Calculate the IRR for both projects.
3. Determine which project should be chosen based on NPV.
4. Determine which project should be chosen based on IRR.