A manufacturing company is analyzing two new production lines. Below is the projected data:

• Production Line 1:

• Initial Investment: $300,000
• Cost of Capital: 11%
• Annual Cash Inflows: $90,000 for 4 years

• Production Line 2:

• Initial Investment: $350,000
• Cost of Capital: 9%
• Annual Cash Inflows: $95,000 for 4 years

Requirements:

1. Determine the payback period for each production line.
2. Calculate the NPV for each production line.
3. Calculate the IRR for each production line.
4. Advise on which production line should be implemented based on your analysis.