You've estimated the following cash flows (in $) for two mutually exclusive projects:

Year	Project A	Project B
0	-5,200	-7,800
1	1,325	1,325
2	2,148	2,148
3	3,640	7,360

The required return for both projects is 8%.

1. What is the IRR for project A?

2. What is the IRR for project B?

3. Which project seems better according to the IRR method?

4. What is the NPV for project A?

5. What is the NPV for project B?

6. Which project seems better according to the NPV method?

7. Compare the answers to parts 3 and 6. If both projects are mutually exclusive, which one should you accept?