The Good Corporation is considering investing in either Project 1 or Project 2. Both projects are expected to last 5 years.

Each project requires an initial outflow today and expects cash inflows in each of the next 5 years.

The Good Corporation requires a rate of return on investment (i.e., Hurdle Rate) of 10% compounded annually.

Expected net cash flows for the two projects are as follows:

	End of Year
	0	1	2	3	4	5
Project 1	(145,000)	38,500	39,650	40,500	41,950	42,695
Project 2	(145,000)	41,500	41,500	41,500	41,500	41,500

Required:

1. Find the Internal Rate of Return (IRR) for each project.
2. Find the Net Present Value for each project.
3. Given your answers in Parts A) and B), which project is preferred? Briefly explain why.