Project Financial Data:

Initial Investment: Project A: $$100,000$; Project B: $$150,000$

Annual Cash Flows $($over a five$-$year period$)$:

Project A: Year $1$: $$10,000$; Year $2$: $$30,000$; Year $3$: $$50,000$; Year $4$: $$20,000$; Year $5$: $$40,000$

Project B: Year $1$: $$0$; Year $2$: $$50,000$; Year $3$: $$50,000$; Year $4$: $$50,000$; Year $5$: $$50,000$

The discount rate is $10\%.$

Net Present Value $($NPV$)$: Calculate the NPV for both Project A and Project B$.$ Considering these projects are mutually exclusive, which project's higher NPV suggests it is the more financially sound choice? $(5$ points$)$

Internal Rate of Return $($IRR$)$: Determine the IRR for each project. Given that only one project can be pursued, which one presents a better rate of return based on the IRR? $(5$ points$)$

Profitability Index $($IP$)$: Compute the IP for both Project A and Project B$.$ With the projects being mutually exclusive, which one's IP ratio indicates a more profitable investment? $(5$ points$)$

Payback Period: Establish the payback period for each project. Between these mutually exclusive options, which project allows for a quicker recovery of the initial investment? $(5$ points$)$

Explain why we should use the NPV or IRR method $($based on class discussion$).(5$ points$)$ Excel spreadsheet of your solution