You are a financial analyst considering two mutually exclusive projects for your company. Only one project can be chosen, and your decision must be based on a thorough financial analysis using the data provided below. Employ the given figures to calculate various financial metrics and determine which project should be recommended for selection.

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%. 1. 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) 2. 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) 3. 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) 4. 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) 5. Explain why we should use the NPV or IRR method (based on class discussion). (5 points) For full credit, please upload an Excel spreadsheet of your solution to your response. (10 points)