A company is considering two mutually exclusive projects with the following cash flows. If the cost of capital is 10%, compute the NPV and IRR for both projects and decide which project should be undertaken.

Project A:

• Initial Investment: $120,000
• Year 1: $30,000
• Year 2: $40,000
• Year 3: $50,000
• Year 4: $60,000

Project B:

• Initial Investment: $100,000
• Year 1: $50,000
• Year 2: $40,000
• Year 3: $30,000
• Year 4: $20,000

Requirements:

1. Calculate the NPV of Project A and Project B.
2. Determine the IRR for both projects.
3. Recommend which project to undertake based on NPV and IRR.
4. Discuss the implications of the payback period for both projects.