Phoenix Products Inc. requires a new machine to produce a part for a solar air conditioner. Two companies have submitted bids, and you have been assigned the task of choosing one of the machines. Cash flow analysis indicates the following:

Year A B

0 -$1,000 -$1,000

1 0 417

2 0 500

3 1,000 500

4 1,000 200

The cost of capital for Phoenix Products is 10 percent. Calculate each project's NPV and IRR.

Please show work NPV A: ____ NPV B: ____ IRR A: _____ IRR B: _____

Show if there is a NPV/IRR conflict? If there is a conflict, which method is preferred and why?