A retail company is considering expanding its e-commerce platform. The following details are provided:

• E-commerce Project 1:

• Initial Investment: $100,000
• Cost of Capital: 15%
• Cash Inflows: Year 1: $40,000, Year 2: $45,000, Year 3: $50,000, Year 4: $55,000

• E-commerce Project 2:

• Initial Investment: $120,000
• Cost of Capital: 14%
• Cash Inflows: Year 1: $45,000, Year 2: $50,000, Year 3: $55,000, Year 4: $60,000

Requirements:

1. Calculate the payback period for each project.
2. Determine the NPV for each project.
3. Calculate the IRR for each project.
4. Recommend which e-commerce project to undertake and provide your reasoning.