William Industries is attempting to choose the better of two mutually exclusive projects for expanding the firm's production capacity. The relevant cash flows for the projects are shown in the following table. The firm's cost of capital is 14%.

Initial Cash	Project A	Project B
Outflow (CF0):	$490,000	$312,000
Year (t)	Cash Flow (CFt)
1	$90,000	$140,000
2	116,000	93,000
3	136,000	81,000
4	172,000	74,000
5	226,000	48,000

1. Calculate the IRR for each of the projects. Round your answers to one decimal point.

   Project A	Project B
   IRR	%	%

2. Assess the acceptability of each project based on the IRRs found in part (a). Project A -Select-acceptrejectItem 3 Project B -Select-acceptrejectItem 4
3. Which project is preferred, based on the IRRs found in part (a)?-Select-Project AProject B