Provide an evaluation of two proposed projects, both with identical initial outlays of $200,000. Both of these projects involve additions toa client'shighly successful product line. The required rate of return on both projects is set at 11%. The expected after-tax cash flows from each project are as presented in the table below.

1. Under what circumstances will the NPV and IRR offer different recommendations, and which recommendation is preferred? Carefully explain
2. How would you accommodate unequal lives of the project while determining the NPVs of the project? Demonstrate using calculations.
3. Explain why unequal lives of projects make NPVs of the projects incomparable.
4. Determine the profitability index for each of these projects? Should the projects be accepted?Explain.