Inatech is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative. Project A and B have the cash flows as shown and Inatech uses a required rate of return of 10% and an inflation rate of 4%. Compute the payback in years and the net present value for both projects and offer advice as to the best course of action.

Year A B 10 -$250,000 $400,000 1 $75,000 $125,000 2 $ 155,000 $230,000 3 |$200,000 $288,000 14 |$175,000 $265,000 15 $160,000 $225,000 and the NPV for project B is higher at $ . (Round your answer to the The NPV for project A is $ nearest S) Project A has a discounted payback, answer to 1 decimal point) Project A has a non-discounted payback, years, compared to project B's payback of years. (write your years, compared to project B's payback of years. %. (write your answer in 2 (write your answer to 1 decimal point) Project A has an IRR %, compared to project B's payback of decimal points) The best course of action based on NPV considerations is to opt for project . (Write A or B) The best course of action based on IRR considerations is to opt for project (Write A or B) The best course of action based on Payback Analysis considerations is to opt for project (Write A or B)