The management of Maratha Udyog has two alternative projects under

consideration. Project $`$A$\text{'}$ requires a capital outlay of Rs$.3,00,000$ but

project $`$B$\text{'}$ needs Rs$.4,20,000.$ Both are estimated to provide a cash flow

for six years: A Rs$.80,000$ per year and B Rs$.1,10,000$ per year. The

cost of capital is $12\%.$ Show which of the two projects is preferable from

the viewpoint of $($i$)$ Net Present Value and $($ii$)$ Internal Rate of Return