You are considering the following two projects and can only take one. Your cost of capital is 10.9 %

10.9%. The cash flows for the two projects are as follows($ million):

Project

Year 0

Year 1

Year 2

Year 3

Year 4

A

negative $ 100

$100

$ 25

$25

$ 30

$30

$ 41

$41

$ 50

$50

B

negative $ 100

$100

$ 50

$50

$ 41

$41

$ 30

$30

$ 22

$22

a. What is the IRR of eachproject?

b. What is the NPV of each project at your cost ofcapital?

c. At what cost of capital are you indifferent between the twoprojects?

d. What should youdo?