MotorInc. is considering two sites for its new production facilities. The opportunity of capital for this type of projects in the market is 12%. Site A requires an immediate investment of $10M and will generate incremental opertating profits of $15M in year 1 and 2. If the firm invests in site B instead, the costs will be spread over two years because of the technical characteristics of the site. So the initial investment is $8M, and the profit in year 1 is reduced to $13M. The profit in year 2 remains unchanged 4. (a) Calculate the IRR of project A. [2 points] (b) At which rate should you discount the cash-flows of Project B? The IRR you found in (a) or the opportunity cost of capital? Explain. 3 points