The Allied Group is considering two investments. The first investment involves a packaging machine, which can be used to package garments for shipping orders to customers. The second possible investment would be a molding machine that would be used to mold the mannequin parts. The first possible investment is the packaging machine, which will cost $14,000. The second investment, the molding machine, would cost $12,000. The expected cash flows for the two projects are given below and the cost of capital to the firm is 15%. Both machines will be unusable after five years and have no salvage value. The net cash flows for the two possible projects are given in the following table: Year Packaging Machine Molding Machine 0 ($14000) ($12,000) 1 4100 3200 2 3300 2800 3 2900 2800 4 2200 2200 5 1200 2200 Questions: Address all of the following questions in a brief but thorough manner.

• Calculate each project's payback period.
• Calculate the NPV for each project.
• Calculate the IRR for each project.
• If the two projects are independent of each other, which projects, if any, should be selected? Explain why or why not.
• If the two projects are mutually exclusive, which project, if any, should be selected? Explain why.