The company is considering two investments. Project E requires an initial investment of $45,000, and Project F requires $42,000.

Yearly Cash Flows

• Year 1: Project E - $12,000; Project F - $14,000
• Year 2: Project E - $14,500; Project F - $11,000
• Year 3: Project E - $15,000; Project F - $10,000
• Year 4: Project E - $11,000; Project F - $9,000

Requirements: (a) Compute the NPV for both projects using a discount rate of 11%. (b) Determine the IRR for both projects. (c) Evaluate which project should be chosen based on NPV and IRR. (d) Analyze the impact of different discount rates on the NPV calculation. (e) Discuss how changes in the projected cash flows might affect the investment decision.