A company is considering two investment projects with the following cash flows. Which project has a higher Internal Rate of Return (IRR)?

Project A:

• Year 0: -$50,000
• Year 1: $10,000
• Year 2: $20,000
• Year 3: $30,000
• Year 4: $40,000

Project B:

• Year 0: -$50,000
• Year 1: $20,000
• Year 2: $20,000
• Year 3: $20,000
• Year 4: $50,000

Requirements:

1. Calculate the IRR for both projects.
2. Compare the IRR with a required rate of return of 15%.
3. Determine which project should be undertaken.
4. Evaluate the sensitivity of each project to changes in the cash flows.