Management of Crane Automotive, a manufacturer of auto parts, is considering investing in two projects. The company typically compares project returns to a cost of funds of 17.00 percent.

Year		Project 1			Project 2
0		- $455,839			- $516,386
1		270,000			121,750
2		115,000			175,170
3		120,500			239,700
4		148,000			258,050

Compute the IRRs based on the cash flows. Which project(s) will be accepted? (Round final answer to 2 decimal places, e.g. 15.25%.)

The IRR of project 1 is % and the project should be rejectedaccepted.

The IRR of project 2 is % and the project should be acceptedrejected.