Consider two projects, Project A and Project B, with the following details:

• Project A:

• Initial Investment: $300,000
• Discount Rate: 10%
• Cash Flows:
  • Year 1: $100,000
  • Year 2: $120,000
  • Year 3: $150,000

• Project B:

• Initial Investment: $350,000
• Discount Rate: 11%
• Cash Flows:
  • Year 1: $120,000
  • Year 2: $140,000
  • Year 3: $160,000

Requirements:

1. Determine the payback period for each project.
2. Calculate the NPV of each project.
3. Determine the IRR for each project.
4. Based on your analysis, recommend which project the company should undertake and explain your reasoning.