Two boys are competing with one another to use the spare nook off their parents kitchen to house their business. Their father sets things up as a friendly competition, declaring only the best business model will be allocated the space. The younger boy is a computer whiz and wants the space for a server for a social media website he maintains. The elder boy wants to use the space to produce his custom painted miniature figures which he sells online. The discount rate for both projects is 10% and the cash flows for the two projects are below: Year 0 1 2 3 4 | ----------| ----------| ----------| ----------| Social media website -75K 24K 27K 43K 13K Painted mini figures -500 215 225 250 300 What is the NPV of for the social media website business?

What is the IRR for the social media website business, from the previous problem? Provide your solution as a decimal with four digits of accuracy.

What is the NPV for the painted mini figures business, from the previous problem?

What is the IRR for the painted mini figures business, from the previous problem? Provide your solution as a decimal with four digits of accuracy.

Which project will the father select, based on the appropriate decision criterion, from the previous problem?