You are considering the following two projects and can take only one. Your cost of capital is 11.2%. The cash flows for the two projects are as follows ($ million):

Project Year 0 Year 1 Year 2 Year 3 Year 4 A -100 26 30 39 51 B -100 51 39 30 20

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?