A company is considering two mutually exclusive projects requiring an initial cash outlay of Sh 10,000 each and with a useful life of 5 years. The company required rate of return is 10% and the appropriate corporate tax rate is 50%. The projects will be depreciated on a straight line basis. The before depreciation and taxes cashflows expected to be generated by the projects are as follows.

YEAR 1 2 3 4 5

Project A Shs 4,000 4,000 4,000 4,000 4,000

Project B Shs 6,000 3,000 2,000 5,000 5,000

Calculate the Internal Rate of Return, (IRR) of both project A and B. Assume that investment decisions are made under conditions of certainty.

Kindly show workings.