Xerox Ltd. is an existing profit-making company. It is engaged in the manufacture of complex photocopiers and scanners. The project with the following costs and cash flows are being considered by the company:

Project I Project II

$ $

0 (240,000) (240,000)

1 62,000 142,000

2 70,000 70,000

3 100,000 82,000

4 140,000 40,000

The company's cost of capital is 15%

i) Calculate the NPV of both the projects.

ii) Calculate the IRR of both the projects.

iii) Comment on calculations in (i) and (ii) above.