Help me please

Q. 4 Langley Co is considering two projects that will each cost $1,500,000 initially and both projects will last 5 years: Project A This project will require $125,000 of initial working capital, and will generate $420,000 cash inflows per year for the 5 years, at the end of which time it will be scrapped with no residual value. The working capital will also be released at the end of the 5-year period to be used for other new projects. Project B In addition to the original investment, Project B will need $125,000 in Year 3 in order to maintain the equipment at peak capacity, and will generate $450,000 in annual cash inflows. It will be scrapped and sold as salvage for $75,000 in its final year. The after-tax discount rate is 8%. CCA rate 20% Tax rate 30% Required: 1) Use net present values to determine the more acceptable of the two projects. 2) Determine the internal rate of return of each project: Is it above [ ], or below[ ] 8%]. Does the IRR support your recommendation in 1)? 3) Explain the tax shield, and why it is important that it be included in this analysis? Would you come to the same conclusion with/without the tax shield calculation? [16 marks/20 minutes] Tax Shield: PV = Cdt X 1+0.5k d + k 1 + k Salvage Value: Sdt X 1+k d + k