Callaway Associates, Inc. is considering the following mutually exclusive projects. Callaway's Cost of capital is 9.5%.

Year Project A Project B

0 ($80,000) ($80,000)

1 $44,000 $65,000

2 $34,000 $30,000

3 $14,000 $0

4 $14,000 $5,000

a. Calculate each project's NPV and IRR. Round the answers to two decimal places.

Project A Project B

NPV: $ $

IRR: % %

b. Which project should be undertaken?