A company is considering projects U and V, requiring an initial outlay of $110,000 each. The expected cash inflows are:

Project U:

• Year 1: $50,000
• Year 2: $40,000
• Year 3: $30,000
• Year 4: $20,000

Project V:

• Year 1: $35,000
• Year 2: $45,000
• Year 3: $40,000
• Year 4: $30,000

Requirements:

1. Calculate the NPV for each project with a 10% discount rate.
2. Calculate the IRR for each project.
3. Determine the discounted payback period for both projects.
4. Decide which project should be chosen if only one can be selected based on the IRR.