You are considering investing in one of two different projects. Two investment options are available as follows:

	Project A, million $	Project B, million $
initial investment	1200	75
Net cash flow, year 1	100	22
year 2	250	30
year 3	400	41
year 4	740	47
year 5	850	48
Residual value	0	0
Tax rate	No tax	No tax

imputed rate of interest 16%

a) What is the net present value of the investments? (Show calculation) b) Which project should you invest in and why? (Show calculation)