Consider two projects, Project J and Project K$,$ with the following end of year cash flows:

End of year cash flows

Year

Project J

Project K

$0$

$-$$$10,000$

$-$$$10,000$

$1$

$$2,900$

$$0$

$2$

$$2,900$

$$0$

$3$

$$2,900$

$$0$

$4$

$$2,900$

$$12,600$

If these projects are mutually exclusive and have a cost of capital of $5$ percent, the appropriate decision is to: $($Hint: Should we use NPV or IRR in this situation?$)$