You've estimated the following cash flows (in $) for a project:

	A	B
1	Year	Cash flow
2	0	-3,940
3	1	974
4	2	1,281
5	3	2,811

The required return is 8.5%.

part 1: What is the IRR for the project?

part 2: What is the NPV of the project?

part 3: What should you do?

Reject the project based on its IRR

Reject the project based on its NPV

Accept the project based on its IRR

Accept the project based on its NPV