You are considering the following four projects with the given initial investments and cash inflows.

• Project 1 requires ₹5,000 and returns ₹1,000, ₹2,000, ₹3,000, and ₹4,000 over the next four years.
• Project 2 needs ₹7,000 and returns ₹2,000, ₹2,500, ₹3,500, and ₹4,500.
• Project 3 requires ₹9,000 and returns ₹2,500, ₹3,000, ₹4,000, and ₹5,000.
• Project 4 demands ₹11,000 and returns ₹3,000, ₹3,500, ₹4,500, and ₹5,500.

Required:

1. Determine the payback period for each project.
2. Select the project if the standard payback period is 2.5 years.
3. Calculate the NPV for each project at a 10% discount rate.
4. Compute the IRR for each project.
5. Provide a recommendation based on NPV and IRR criteria.