Two public infrastructure projects have the economic profiles that follow:

Option B.

Year	Capital Cost	Operating and Maintenance Cost	Benefits
1	2,500,000	0	0
2	500,000	50,000	750,000
3		100,000	750,000
4		100,000	750,000
5		100,000	750,000
6		100,000	750,000
7		100,000	750,000
8		100,000	750,000
9		100,000	750,000
10		100,000	300,000

Option A

Year	Capital Cost	Operating and Maintenance Cost	Benefits
1	2,000,000	0	0
2	1,000,000	10,000	0
3	500,000	70,000	120
4		90,000	600,000
5		90,000	800,000
6		90,000	800,000
7		90,000	800,000
8		90,000	800,000
9		100,000	800,000
10		100,000	500,000

Use this data to compute for each (a) the Net Present Value at discount rates of 10 and 5 percent (c) the internal rate of return for each. Describe the facts about the projects that would dictate which criterion is appropriate, and which project is preferable under each circumstance.