Peter is a junior financial analyst of SpaceBar Corporation and has been instructed to analyze two capital investment projects, namely, Project SE and Project ZE. Both of the projects have an equal initial outlay of $70,000 and a cost of capital of 10%. As a senior financial analyst of SpaceBar Corporation, you are required to assist Peter on the proposed capital investment projects. The projects expected cash flows are as follows:

Year	Cash Flow ($)
	Project SE	Project ZE
0	-70,000	-70,000
1	40,000	35,900
2	35,000	38,000
3	30,500	36,000
4	25,300	33,700

Calculate:

1. Discounted payback period for both projects.

(8 marks)

2. Net present value (NPV) for both projects.

(4 marks)

3. Internal rate of return (IRR) for both projects.

(11 marks)

4. If the projects are mutually exclusive, recommend the best project for SpaceBar Corporation.

(2 marks)

Please do give this answer in detail and not in excel. Explain down the steps clearly.