A firm is considering investing into one of two

mutually exclusive projects. The first project costs $$10,000$ today and will

generate cash flows of $$1,800$ per year for $10$ years. The

second project costs $$20,000$ today and will generate a one$-$

time cash flow of $$23,100$ one year from today. The $($risk$-$

adjusted$)$ discount rate for each project is $10\%.$ Calculate

both the NPV and the IRR for each project. In which project

should you invest and why?