A firm is comparing two projects, A and B, with the following cash flows:

Year	Project A	Project B
0	-$5,000	-$5,000
1	$1,500	$1,000
2	$2,000	$2,000
3	$2,500	$2,500
4	$3,000	$3,500

Requirements:

1. Calculate the NPV of each project if the discount rate is 8%.
2. Determine the IRR for both projects.
3. Calculate the payback period for each project.
4. Based on NPV and IRR, which project should the firm choose?