GHI Enterprises is considering the following projects with these financial details:

• Project C:

• Initial Investment: $190,000
• Cost of Capital: 10%
• Cash Inflows:
  • Year 1: $60,000
  • Year 2: $70,000
  • Year 3: $80,000
  • Year 4: $40,000

• Project D:

• Initial Investment: $210,000
• Cost of Capital: 11%
• Cash Inflows:
  • Year 1: $70,000
  • Year 2: $80,000
  • Year 3: $90,000
  • Year 4: $50,000

Requirements:

1. Determine the payback period for each project.
2. Calculate the NPV of each project.
3. Determine the IRR for each project.
4. Based on your analysis, recommend which project should be undertaken and explain your rationale.