ABC Corporation is evaluating two projects, E and F. Project E requires an initial investment of $25,000 and is expected to generate cash flows of $8,000 in year 1, $10,000 in year 2, $12,000 in year 3, and $14,000 in year 4. Project F requires an initial investment of $22,000 and is expected to generate cash flows of $7,000 in year 1, $9,000 in year 2, $11,000 in year 3, and $12,000 in year 4. Assume a discount rate of 9%.

(a) Calculate the NPV for each project.

(b) Provide your accept/reject decision for each project.

(c) Determine the IRR for both projects.

(d) Calculate the payback period for both projects.

(e) Which project would you recommend if they are independent and why?