As a Financial Analyst of Morgan Investments Co., you are going to make a business investment decision on which of the two possible investments the company should undertake. Both projects cost 200,000 with a rate of return of 12%. Below are the cash profits of the two projects:

Year	Project A	Project B
	Profits ()
1	36,000	37,300
2	42,000	40,000
3	56,000	56,000
4	44,000	51,000
5	35,000	39,650
6	32,500	42,500
7	66,000	80,000

Question one:

Using NPV and IRR methods, appraise the two projects and advise the Financial Directors which of the projects is viable and why.

Question two:

Which of the methods is superior? Justify your answer.