The Cosmetic Company has to decide whether to introduce Beauty Cream A or Beauty Cream B on the market. The initial cost of introducing each cream is $1M and the net cash flows generated by each are indicated in the following table:

	Cream A	Cream B
Initial Cost	$1,000,000	$1,000,000
Net Cash Flows
Year 1	300,000	-100,000
Year 2	300,000	10,000
Year 3	300,000	300,000
Year 4	300,000	300,000
Year 5	300,000	1,400,000

Using a discount rate of 10%:

(A) What is the Net Present Value (NPV) of each project?

(B) What is the Internal Rate of Return (IRR) of each project?

(b-1) Which cream should the firm bring to market? Why?

(b-2) If the Initial Cost increases to $1,500,000 for Cream A, what happens to its NPV? Would your answer to (b-1) above change?