Project A:

• Initial Investment: $30,000
• Yearly Cash Flows: $8,000 for 5 years

Project B:

• Initial Investment: $25,000
• Yearly Cash Flows: $10,000 for 3 years

Requirements:

1. Calculate the NPV for both projects using a 12% discount rate.
2. Determine the IRR for each project.
3. Find the Payback Period for each project.
4. Compare and recommend which project should be accepted based on financial criteria.