Consider the following cash inflows and outflows related to project A and project B.

	CASH INFLOWS AND OUTFLOWS (IN $ 1,000)
Project A	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6
Benefits	$60	$40	$55	$40	$40	$60
Costs	$120	$20	$30	$20	$15	$25
Project B	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6
Benefits	$65	$90	$44	$40	$20	$20
Costs	$137	$45	$22	$20	$8	$7

For each project,

1. Calculate the cash flow. (0.25 Mark)
2. Calculate the NPV assuming 15% discount rate, and determine which of the two projects would you prefer? Justify your answer. (0.75 Mark)