The company is considering two projects, Project J and Project K. Project J requires an initial investment of $55,000, and Project K requires $52,000.

Yearly Cash Flows

• Year 1: Project J - $14,000; Project K - $16,000
• Year 2: Project J - $16,500; Project K - $13,000
• Year 3: Project J - $17,000; Project K - $12,000
• Year 4: Project J - $13,000; Project K - $11,000

Requirements: (a) Calculate the NPV for each project using a discount rate of 7%. (b) Determine the IRR for each project. (c) Based on the NPV and IRR, which project is more attractive? (d) Assess the payback period for both projects. (e) Discuss the potential impact of market conditions on the projected cash flows.