A company is evaluating two new projects which require investments of $500 lakhs each in equipment and infrastructure. The projects are expected to yield the following earnings (before depreciation and taxes) over the next five years.

Year	1	2	3	4	5
Project A Earnings (Rs.in lakhs)	200	210	220	230	240
Project B Earnings (Rs.in lakhs)	180	190	200	210	220

• The cost of capital for both projects is 10% and assets are to be depreciated at 15% on a Written Down Value basis. The scrap value at the end of the five years is negligible.
• Assume zero income tax applicable.
• Calculate the net present value (NPV) of both projects.
• Determine which project the company should invest in based on NPV.
• Calculate the internal rate of return (IRR) for both projects.