Company X is considering two projects, Project A and Project B, with the following details:

Details	Project A	Project B
Initial Investment	$5,000,000	$7,000,000
Expected Life	4 years	5 years
Annual Income before Depreciation & Tax	$1,200,000	$1,800,000
Depreciation Method	Straight Line	Straight Line

The company’s cost of capital is 10%, and the tax rate is 25%.

Requirements:

1. Calculate the Net Present Value (NPV) for both projects.
2. Determine the Internal Rate of Return (IRR) for both projects.
3. Calculate the Payback Period for both projects.
4. Assess the Discounted Payback Period for both projects.
5. Recommend which project should be undertaken.