Good old XYZcorp is considering two mutually exclusive projects, A & B in order to expand their product line. After letting the cost accountants out of their cages, it was determined that project As initial investment must be $42,400, while project be will cost $60,000. Project A has projected cash inflows of $25,000 per year for three years. Project Bs inflows are more variable: $10,000 in year 1; $30,000 in year 2; and $40,000 in its final year. You have determined the following: The Prime is 7%, LIBOR is 6%. The firms cost of capital is 12%. Using NPV analysis, if the NPV for project B = + $1,320, which project do you prefer?

Given the information for project A in problem P-2, what is this projects IRR?