There are two projects that the company is considering:
Project A costs 10,000 to implement today, and it brings subsequent cash flows of 5,900 at the end of year 1; 2,000 at the end of year 2; 5,000 at the end of year 3.
Project B's initial cost is 7,500, and subsequent cash flows are 5,000 per year for 3 years.
WACC is 8% for both projects.
Calculate NPV and IRR for each project, and decide which to recommend.