A company is evaluating two mutually exclusive projects:

Project A:

• Initial investment: $5,000
• Year 1 cash flow: $1,500
• Year 2 cash flow: $1,500
• Year 3 cash flow: $2,000
• Year 4 cash flow: $2,500

Project B:

• Initial investment: $5,000
• Year 1 cash flow: $2,000
• Year 2 cash flow: $2,000
• Year 3 cash flow: $1,500
• Year 4 cash flow: $1,500

a) Calculate the NPV at a 10% discount rate. b) Calculate the IRR for each project. c) Which project should be selected based on the NPV and IRR criteria?