You are considering the following two projects and can take only one. Your cost of capital is 11.1%. The cash flows for the two projects are as follows ($ million):

Project Year 0 Year 1 Year 2 Year 3 Year 4 A -100 27 28 41 50 B -100 50 41 28 21

a. What is the IRR of each project?

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

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

d. What should you do?