please provide correct answer.

12. (a) SMB Ltd. has considered two projects with economic life of 6 years having following cash inflows after tax: End of year 1 2 3 4 5 6 Total ) 1,00,000 80,000 75,000 70,000 68,000 62,000 4,55,000 Project 1 Project 2 62,000 68,000 70,000 75,000 80,000 1,00,000 4,55,000 As the total cash inflows are identical and investment amount is 3,30,000 for both the projects, the management of SMB Ltd. has decided to go for any one of the given projects. Do you support their decision? Justify your answer. The post-tax cost of capital of SMB Ltd. is calculated as 10%, and the required discounting factors are given below: Year 1 2 3 4 5 6 DF @ 10% 0.9090-826 0.751 0-683 0-621 0-564 (b) Project A and Project B are the two mutually exclusive projects under consideration. While Project A has a higher NPV, Project B has a higher IRR. Which project should be selected and why? 12+8