The cash flows for two projects, C and D, are given below:

Project C:

• Year 0: -$45,000
• Year 1: $15,000
• Year 2: $20,000
• Year 3: $25,000
• Year 4: $10,000

Project D:

• Year 0: -$60,000
• Year 1: $18,000
• Year 2: $22,000
• Year 3: $24,000
• Year 4: $28,000

a. Determine the NPV, IRR, and payback period for both projects, assuming a discount rate of 9 percent.

b. Discuss which project(s) should be chosen if they are independent, and which should be chosen if they are mutually exclusive.