XYZ Manufacturing is considering two different projects, C and D. Both require an initial investment of $60,000 and have a lifespan of 5 years. The company’s cost of capital is 10%. The following are the projected cash flows:

Year	Project C	Project D
1	$20,000	$18,000
2	$18,000	$17,000
3	$16,000	$19,000
4	$14,000	$20,000
5	$12,000	$21,000

Requirements:

1. Calculate the NPV for each project.
2. Compute the IRR for each project.
3. Determine the Payback Period for each project.
4. Assess the Accounting Rate of Return (ARR) for each project.
5. Make a recommendation on which project to select.