Assess the cost-effectiveness of Company Y's investment in artificial intelligence (AI) research using job costing.

Requirements:

Identify direct costs associated with Company Y's AI research and development projects, estimated at $30,000,000.

Allocate indirect costs, including infrastructure and data acquisition, using job costing methods.

Determine the total cost per AI project (e.g., machine learning algorithms, AI-driven applications).

Analyze profitability and market potential for AI-driven products and services.

Recommend strategies to enhance AI capabilities and capitalize on technological advancements.

Investment Project	Initial Investment ($)	Annual Cash Flows ($)	Project Life (years)
Machine Learning	$40,000,000	$8,000,000	8
AI Applications	$35,000,000	$7,000,000	6

1. Calculate the NPV, IRR, and payback period for Project A with an initial investment of $15,000,000 and annual cash flows of $3,500,000 over 6 years.
2. Calculate the NPV, IRR, and payback period for Project B with an initial investment of $12,000,000 and annual cash flows of $2,800,000 over 5 years.
3. Ensure consistency in financial reporting across both projects.
4. Recommend which project should be pursued based on the financial metrics and consistency principle.