LMN Corporation is evaluating two investment options, Project X and Project Z, with the following cash flows:

• Project X:

• Initial Investment: $220,000
• Cost of Capital: 7%
• Annual Cash Inflows: $90,000 for 3 years

• Project Z:

• Initial Investment: $240,000
• Cost of Capital: 8%
• Annual Cash Inflows: $100,000 for 3 years

Requirements:

1. Calculate the payback period for both projects.
2. Determine the NPV for both projects.
3. Calculate the IRR for both projects.
4. Based on the calculated values, suggest which project should be selected and provide your reasoning.