Given the following cash flows for two projects:

• Project E:
  • Year 0: -$7,000,000
  • Year 1: $2,000,000
  • Year 2: $3,000,000
  • Year 3: $3,500,000
  • Year 4: $4,000,000
• Project F:
  • Year 0: -$5,000,000
  • Year 1: $1,000,000
  • Year 2: $2,000,000
  • Year 3: $2,500,000
  • Year 4: $3,500,000

Requirements:

1. Calculate the NPV of each project at a 9% discount rate.
2. Determine the payback period for each project.
3. Identify the IRR for each project.

Which project should be chosen based on NPV?