JCT, Inc. is evaluating two projects that are mutually exclusive, A and B. Project A will cost $95,000 and generate $65,000 in year one and $75,000 in year two. Project B costs $120,000 and is predicted to yield $64,000 in the first year, $65,000 in the second, $56,000 in the third, and $40,000 in the fourth. The necessary rate of return for these projects is 10% for JCT, Inc.

What is Project B's modified internal rate of return? How do you compute the net present value of these projects? Which one(s) should be considered?