Consider the following cash flows of two mutually exclusive projects for Merced Granite, Inc.. Assume a 10% discount rate.

YEAR	Livermore Project	Modesto Project
0	-2,000,000	-1,000,000
1	1,200,000	600,000
2	1,000,000	800,000
3	1,000,000	500,000

a. Based on the NPV, which project should be taken?

b. Based on the IRR, which project should be taken?

c. If you are using IRR, is incremental IRR appropriate in this case? If yes, please do the analysis.