Projects 1 and 2, of equal risk, are alternatives for expanding X Company's capacity. The firm's cost of capital is 10%. The cash flows for each project are shown in the following table:

Project 1 Project 2 Initial investment $210,000 $180,000 Year Cash inflows 1 $55,000 $55.000 2 $60,000 $55,000 31 $65,000 $55,000 41 $70,000 $55.000 5 $75,000 $55.000 Your Answer: (Round to two decimal places.) a. The payback period of Project 1 is The payback period of Project 2 is b. The NPV of Project 1 is $ The NPV of Project 2 is $ c. The IRR of Project 1 is %. The IRR of Project 2 is %. d. Which project will you recommend? Project years. years