The company that just hired you is trying to choose between two innovation projects using net present value. The two projects have the following cash flows:

Project 1: year 1 - $1,500; Year 2 - $2,000; Year 3 - $5,000; Year 4 - $3,000;

Project 2: year 1 - $5,000; Year 2 - $3,000; Year 3 - $1,500; Year 4 - $2,000;

Interest rate: 10%

Assignment a: Calculate the NPVs for each project

Assignment b: Which of these projects should the company choose?