DEF Corporation is considering two mutually exclusive projects with the following cash flows:

Year	Project A	Project B
0	-$90,000	-$100,000
1	$30,000	$40,000
2	$40,000	$50,000
3	$50,000	$60,000

Requirements:

1. Calculate the NPV of each project if the discount rate is 8%.
2. Compute the IRR for each project.
3. Determine the profitability index.
4. Assess the payback period and discounted payback period.
5. Recommend which project to proceed with based on NPV and IRR.