Eta Inc. is considering two projects. Project I requires an initial investment of $38,000 and provides the following cash flows:

• Year 1: $10,000
• Year 2: $12,000
• Year 3: $14,000

Project J needs an initial outlay of $48,000 and offers the following cash flows:

• Year 1: $12,000
• Year 2: $14,000
• Year 3: $16,000

Requirements:

1. Determine the NPV for each project using a discount rate of 11%.
2. Calculate the Payback Period for each project.
3. Evaluate the IRR for each project.

Decide which project should be undertaken based on the financial analysis.