Company Y is analyzing two projects, Project Alpha and Project Beta. The investment and cash inflows are:

• Project Alpha: Initial Investment $100,000, Cash Inflows: Year 1 - $30,000, Year 2 - $40,000, Year 3 - $50,000, Year 4 - $60,000.
• Project Beta: Initial Investment $120,000, Cash Inflows: Year 1 - $40,000, Year 2 - $50,000, Year 3 - $60,000, Year 4 - $70,000.

Requirements:

1. Calculate the payback period for each project.
2. Calculate the net present value (NPV) of each project at a discount rate of 10%.
3. Determine the internal rate of return (IRR) for each project.
4. Calculate the profitability index (PI) for each project.
5. Make a recommendation on which project should be pursued and explain why.