for competing projects the discounting method that consistently chooses the wealth maximizing project should be used, NPV measures profitability in absolute terms while IRR measures relative profitability NPV measures the amount by which the value of the firm changes and thus is consistent with maximizing wealth.information:consider two pollution prevention designs design A and design B. both design have a project life of 5 years design A requires an initial outlay of $180,000 and has a net annual after tax cash inflow of $60,000 revenues of $180,000 minus cash expenses of $120,000. design B with an initial outlay of $210,000 has a net annual cash inflow of $70,000 $240,000-$170,000 the after tax cash flows are summarized as follows: CASH FLOW PATTERNYEAR Design A Design B0 $180,000 $210,0001 60,000 70,0002 60,000 70,0003 60,000 70,0004 60,000 70,0005 60,000 70,000the cost of capital for the company is 12%required:calculate the NPV and the IRR for each project