Net Present Value Versus Internal Rate of Return For discount factors use EXHIBIT 14A.1 and EXHIBIT 14A.2. A Company is thinking about two different modifications to its current manufacturing process. The after-tax cash flows associated with the two investments follow: Year Project I 0 $(100,000) 1 2 134,560 The company's cost of capital is 8%. Required: Project II $(100,000) 63,857 63,857 1. Compute the NPV and the IRR for each investment. Round present value calculations and your final NPV answers to the nearest dollar. Round IRR answers to the nearest whole percent. IRR NPV Project I Project II 15,364 15,874 X 16 % 18 % 2. Conceptual Connection: Why the project with the larger NPV is the correct choice for the company. NPV reveals the total wealth change attributable to each project.