Fastron Electronics is considering two new projects, Project C and Project D. Each project requires an initial investment of USD 150,000. The expected cash flows for each project are as follows:

Project C:

• Year 1: USD 50,000
• Year 2: USD 60,000
• Year 3: USD 40,000
• Year 4: USD 70,000

Project D:

• Year 1: USD 60,000
• Year 2: USD 50,000
• Year 3: USD 50,000
• Year 4: USD 60,000

Requirements:

1. Calculate the payback period for both projects.
2. Determine the NPV for both projects assuming a discount rate of 10%.
3. Calculate the Internal Rate of Return (IRR) for each project.
4. Which project should Fastron Electronics choose based on the NPV and IRR calculations?
5. Discuss the advantages and disadvantages of using NPV and IRR for project evaluation.