A firm is considering two investment projects, A and B. These projects are NOT mutually exclusive. Assume the firm is not capital constrained. The initial costs and cashflows for these projects are:

year	A	B
0	-48000	-42000
1	19000	10000
2	17000	35000
3	25000	8000

(a) Using a discount rate of 10% calculate the net present value for each project. What decision would you make based on your calculations?

(b) How would your decision change if the discount rate used for calculating the net present value is 12.5%?

(c) Calculate an approximate IRR for each project. Assume the hurdle rate is 10%. What decision would you make based on your calculations?