A company is considering two new projects, A and B. The following data is available:

	Project A	Project B
Cost of Capital	10%	12%
Initial Investment	$200,000	$250,000
Cash Inflow Year 1	$60,000	$70,000
Cash Inflow Year 2	$80,000	$90,000
Cash Inflow Year 3	$100,000	$110,000
Cash Inflow Year 4	$120,000	$130,000

Requirements:

1. Calculate the payback period of each project.
2. Calculate the net present value (NPV) of each project.
3. Determine the internal rate of return (IRR) for each project.
4. Provide a recommendation on which project to select and justify your choice.