Scenario $2$: Two mutually exclusive projects $($Project A and Project B$)$ are being evaluated. Both projects require an initial investment of $$100,000.$ The expected cash flows for each project are as follows:

Project A: Year $1$: $$40,000$ Year $2$: $$30,000$ Year $3$: $$25,000$ Year $4$: $$15,000$

Project B: Year $1$: $$25,000$ Year $2$: $$35,000$ Year $3$: $$40,000$ Year $4$: $$20,000$ The company's cost of capital is $10\%.$ Required:

$3.$ Calculate the NPV for both Project A and Project B using the provided cost of capital. $($Round to the nearest whole dollar$)$

$4.$ Considering only NPV$,$ which project would you recommend, and why? Bonus Challenge: $($This question requires a financial calculator or spreadsheet with IRR function$)$

$5.$ Calculate the IRR for Project A and B$.($Note: You can mention that a financial calculator or spreadsheet is required for this calculation$)$

$6.$ Considering only $1$ project to be prioritized, which project will you recommend?